The British pound broke to a new high against the U.S. dollar (FOREX:GBPUSD) as expected after we identified the end of a corrective retracement at 1.5850. As such, we are now tracking a new impulse leg up, which can be wave C and the final part of a double zig-zag in wave E). If this is the correct count, then the rally from the July low is near completion. Ideally we will see a reversal down from around the 1.64-1.66 region.
We also are tracking a different count that shows a five-wave rally from the July low, but even this count is calling for a turning point as we see the pair in a five-wave up.
On the four-hour chart, the GBP/USD is in a pullback mode, which we think is a corrective move because wave (iv) is part of the incomplete wave C. As such, we expect a new high with a push higher in wave (v) into the 1.6500-1.6600 region. We may see a top formation of a triangle and the end of a big wave E) in that area. However, this only can be confirmed by an impulsive bearish reversal, so until then the trend remains up.