Elliott Wave Analysis of GBP/USD 1 Aug 2010

In my recent Elliott wave analysis of GBP/USD, I had suggested that 1.5655 is an important level, and if we fail there and come below 1.5530, perhaps we can kiss the Sterling Bulls a fond goodbye. But the love story is far from over, it looks. Goldman Sachs has put out a note (published in Sunday Times) that the UK ‘will bounce back stronger than America, the eurozone and other advanced economies, with predicted growth of 2.9% next year’. In the face of such evidence, and our technical resistance already violated (although not yet on a closing basis), it becomes imperative to go back to the charts and do a re-count. I will do that tomorrow. Remember folks, never be scared to change your mind. What matters is whether you made money, not whether your medium term count needs revision. Elliott wave analysis is only a tool to improve our chances of making money. How you use this tool to give you the edge is what is important. Ramki