Sterling Turns at the Top End of Pivot Zone - 1.5550 Next

Last week, we touched on 1.5650 being the maximum price zone that would keep this bearish wave 3 count alive. Lo and behold, the nerves were tested this morning as price hung out near 1.5650 for a couple hours.

There were 3 points intersecting near 1.5650.

• Wave c = wave a = 1.5640
• 78.6% retracement of the August to September sell off = 1.5674
• Wave (ii) = wave circle red ‘ii’ = 1.5650

Now that we have sold off a bit from today's high, the wave (iii) picture is still alive. Now, it becomes a test of support and if those support levels begin to break, it will build the case for the wave (iii) picture.

The next levels of support to watch is 1.5550 then 1.5450.

This wave (iii) has significant implications if it is true. Looking at 1.49 or 1.35 as target zones.

Here was a post illustrating our previous view from last week :
dailyfx.com/forex/education/trading_tips/daily_trading_lesson/2015/09/10/GBPUSD-Elliott-Wave-Analysis-JWew.html?CMP=SFS-70160000000Nc3HAAS

Good luck!