Cable extended even lower yesterday, with very sharp decline during US trading hours. We know that sharp and big moves usually represent wave three that is part of an impulsive, five wave cycle. As such, we updated the count that is pointing for more GBP weakness in the days ahead. We are tracking wave three of three now that may reach 1.5000 level in the very near-term. Meanwhile any pull-backs should prove corrective while price is trading below 1.5440.

The weekly chart indicates that price is well below 2009 support line and now also took out the swing low from January 2012, which could be very ugly for GBP. Larger count suggests that pair is at the start of big wave (C ) down.

Forex Analysis by Gregor Horvat at ForexPros. com