Big Picture

Okay, I thought I would give a bigger picture outlook for this chart. The Sterling made it to my retrace zone now it should move short. I think the short move will end in the 1.6210 to 1.6140 zone. It could run shorter than that (perhaps as far as 1.6080) but only time will tell. Once that move is over I think the trend long will resume per the chart below. From Aug 5th, 2009 till Dec 30, 2009 the Pound has traced out a three wave movement. That is corrective. I am going to lable it (X). Then it moved up in 3 waves that will be labled a wave and should befinishing b wave by tonight or tomorrow. From there it should move long in 5 waves to, most likely, above 1.6877 to finish to long movement that began Jan 23, 2009. The ensuing short move should then take the GBP to below 1.3500 and likely much lower.