Gbp/Usd - The wave structure on cable is still pointing lower after only three waves of a recovery, which appears to be wave 4). In fact minor decline from the yesterdays peak moved very deeply into a territory of a wave A, which is a very strong confrimation that bounce was corrective and that larger trend is down! As such, our view remains bearish for a fall into a new low, below 1.5420, area that should be triggered once 1.5460 is broken.

For now critical/invalidation level is at 1.5690; just for case, if maybe this was a recovery of a wave four of one larger degree.

Aud/Usd - Aussie recovered in five waves from Friday lows, which we know is an impulsive structure that shows direction of a current trend or change of a previous trend. As such, we believe that temporary lows are in place on Aud/Usd and that current five wave leg, is only wave (a), first leg of a minimum 3-wave recovery. At the moment we are monitoring final stages of a wave (a), which already reached minimum requirements; levels above wave iii). As such, be ready for a possible push lower in the very near-term within wave (b), especially once 0.9860 is out, when prices will be trading towards the open Sunday gap.

Forex Analysis by Gregor Horvat at ForexPros. com