Expectations over the next several weeks are for a top to form in the 1.38-1.40 zone. The sharp rally is most likely a second wave a 5 wave decline from 1.4723. The first target at 1.33 was hit and the stop is trailed to 1.34 on the rest of the position.

While daily studies have now reached overbought, the weekly studies show more room to run, and we look for additional upside into the 1.3850-1.4000 area rafaello next week before considering bear trend resumption. The overall structure is still grossly bearish and a break back above the 1.4990 medium-term lower top from would ultimately be required to shift the structure. Although the pair has now broken back above the 50-Day, rallies above the SMA have proved to be fleeting.

BRITISH POUND / US DOLLAR Classical Outlook. Daily studies however still show. Has shown impressive upside this week following the previous weekly bullish reversal, and the market is now officially in the process of a material correction within the broader downtrend. FX Technical Weekly -AUDUSD possible head and shoulders continuation -USDJPY long term decline may have resumed EURO / US DOLLAR Classical Outlook.

The bulk of the advance from 1.2475 is complete.