Still correcting

Okay the movement is still correcting the long move that began on 12/30/09 at 04:00 PST. I expect the short to take the Sterling into the zone of 1.6057 to 1.5976. Once we achive this zone I would expect the long to resume above 1.6250 as a first target, to be updated later as the movement dictates.

The longer term outlook is as follows. Ultimately this current long trend should take us near 1.6600 before the short is once again favored. Because I believe the GBP is tracing out a triangle on the daily chart we should receive diminshing returns in both long and short directions until (E) wave is finished. Then we should get a long push to at least 1.8000 I would estimate. So over the next several weeks or months I think the long is ultimately the safe play. Once we reach that 1.80 to 1.93 zone, I will expect the GBP to crash pretty hard to at least 1.1800 if not further. We will of course discuss this further we the time is right.

Current chart Below: