I have a large following from Britain, so this wave count is just for you. With it comes a warning, as I had little time to really work on the big picture. 1980 is as far back as I could go. I had to manipulate this June contract to keep that 1980 peak in view. It takes a very long time to build a good wave count as you have to go over it hundreds of times before you might see a pattern that is recognizable. Then you have to count it all out to try and confirm what you think you are seeing.
Wave counting is a secondary act, as we have to see the pattern first, before you can count it. If this wave count doesn’t work, but the Pound keeps soaring much higher then this wave count must be trashed and the entire thing has to be counted again.
One wrong move in Minor degree is enough to instantly start a review going back as far as we have to. In this case the 1980 peak could be the location for a Cycle degree wave 3 top and what followed was an implosion where you can only see very small wave patterns. We are looking at a potential zigzag bear market in a Cycle degree 4th wave correction, that is still far away from completing. Mind you the speed at which the Pound has crashed in the past, sure can speed up the final move. The British Pound also made a strong peak in 2008, but that only matches up a Primary Degree “B” wave top. The little move in Minute degree can be removed as it can be part of the diagonal bullish cycle leading up to it.
Between 1992 and the 2008 peak we had another huge H&S which end up being a very bearish H&S. Since the 1985 bottom the Pound would be in the mother of all Head and Shoulder patterns that would be extremely bullish, even if the Pound crashes below that 1985 bottom again.
A big zigzag crash can have a very steep “A5” wave, but then the declining “C5” wave turns into a wild 5 wave run including a triangle in the 4th wave position. In flats this is usually reversed where the “C5” wave crashes dramatically.
The commercials are short the British Pound so that just adds to the bearish outlook. There are many asset classes with this type of a 4th wave, so something rather big is going to happen during the rest of this year, which will force a major reversal onto all the investors that are leveraged in the wrong direction.
So far I have a rough list of about 16 asset classes that can have Cycle degree peaks already completed or still in progress.