I see that GBPUSD has been in quite a strong uptrend for some time now and has began correcting.
I have labelled the correction as a zig-zag followed by a flat. It does have the potential to become a more complex correction,
however, it is looking upside regardless if it continues correcting or resumes the uptrend.
I have drawn out how I see the flat to have formed.
I see the fifth wave coming to an end with an ending diagonal. The grey area I highlighted is the 61.8 zone it may continue to crawl to.
I don't see it falling below that zone so stops could be quite tight and you could take this trade as an X wave which could be cut short, or as a Trend Continuation which would be much more favorable.
If this does fall into the grey zone then it would provide the opportunity of a very good risk to reward trade.
I tend not to post flats or triangles as I still need to get comfortable and learn them fully, so this post will be interesting to see how it turns out.
Any advice is greatly appreciated,
Thanks.
I have labelled the correction as a zig-zag followed by a flat. It does have the potential to become a more complex correction,
however, it is looking upside regardless if it continues correcting or resumes the uptrend.
I have drawn out how I see the flat to have formed.
I see the fifth wave coming to an end with an ending diagonal. The grey area I highlighted is the 61.8 zone it may continue to crawl to.
I don't see it falling below that zone so stops could be quite tight and you could take this trade as an X wave which could be cut short, or as a Trend Continuation which would be much more favorable.
If this does fall into the grey zone then it would provide the opportunity of a very good risk to reward trade.
I tend not to post flats or triangles as I still need to get comfortable and learn them fully, so this post will be interesting to see how it turns out.
Any advice is greatly appreciated,
Thanks.
Comment:
On this pair I did not analyse the higher time frame which is a must. Here I predicted an up move, but in the higher time frame I see it as bearish. If the upwards move does form, it will be as a short term, short lived pullback towards the trendline. This could provide good entry for downside, or more conservative traders could enter on a flag to the downside. As I have seen a break of the trendline, I am now expecting downside to previous lows of around 1.21 . Apologies for the poor prediction.