GBPUSD: Ride in the A-B-C CORRECTION
Summary:
a. Sterling is making an ABC Correction
b. Currently the wave structure is in the corrective wave B
c. There's a double top chart pattern in the smaller timeframe conforms downside movement could be occurred
d. Downside target at 1.2720 with 1.3075 as bearish invalidation level
What's up traders?
Here I provide a GBPUSD technical analysis based on my knowledge about Elliott Wave principle.
It's really obvious that Sterling is forming an ABC Correction with a sharp bearish movement that already penetrating wave 4 at 1.2980 and will likely continued drop and I am expecting a price reversal confirmation at 1.2580-1.2620 area to go long.
That area have a role as harmonic support whereas the Fibonacci retracement golden ratio 61.8 have met the turncoat area.
However, as an aggressive traders I do have another trading plan to ride the expected Wave B and go short as I marked at the picture provided.
The downside movement have a decent risk to reward ratio (1:2.45) which fulfill my basic trading rules that the reward minimum should be 1:2.
Disclaimer: All of the information that provided is based on sources that we believe to be reliable, but they have no guarantees. Therefore, every effort is made to ensure that the content is accurate and complete. I have a very strict money management calculation and usually I trade with (max.) 5% risk per pair to ensure sustainability and equity endurance to make money in the futures market for a long-term period. Any profits or losses that occurred based on this analysis is your own responsibilities as a trader or an investor.
a. Sterling is making an ABC Correction
b. Currently the wave structure is in the corrective wave B
c. There's a double top chart pattern in the smaller timeframe conforms downside movement could be occurred
d. Downside target at 1.2720 with 1.3075 as bearish invalidation level
What's up traders?
Here I provide a GBPUSD technical analysis based on my knowledge about Elliott Wave principle.
It's really obvious that Sterling is forming an ABC Correction with a sharp bearish movement that already penetrating wave 4 at 1.2980 and will likely continued drop and I am expecting a price reversal confirmation at 1.2580-1.2620 area to go long.
That area have a role as harmonic support whereas the Fibonacci retracement golden ratio 61.8 have met the turncoat area.
However, as an aggressive traders I do have another trading plan to ride the expected Wave B and go short as I marked at the picture provided.
The downside movement have a decent risk to reward ratio (1:2.45) which fulfill my basic trading rules that the reward minimum should be 1:2.
Disclaimer: All of the information that provided is based on sources that we believe to be reliable, but they have no guarantees. Therefore, every effort is made to ensure that the content is accurate and complete. I have a very strict money management calculation and usually I trade with (max.) 5% risk per pair to ensure sustainability and equity endurance to make money in the futures market for a long-term period. Any profits or losses that occurred based on this analysis is your own responsibilities as a trader or an investor.
Trade active
Comment:
140 pips in hand, partially close and move SL+ 40 pips.
Trade closed: target reached:
Nice movement from Sterling.