GBP/USD

Medium term (2/17):  Whether or not the 1.4079 low (1/21/16) represented Major Wave V or Wave III down, I would expect any recovery attempt to take more time (though the distance, i.e. the rally in Wave A was enough).  Thus, looking for another recovery attempt off today’s low at 1.4242.  That said, a full test of the 1.4079 low is possible while keeping the recovery view intact.  Below 1.4079 sets up for a test of the credit crunch low near 1.3500…   

Daily View (2/17):  Today’s low came at 1.4242; the standard extension of minor Wave (c) = (a) was 1.4256…so distance has been met, should the pattern be one the market is working from.  So, now looking for the pair to rally in Wave (a) of C from the low today, now that UK jobs data is out of the way.  

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