GBPUSD - The diagonal pattern in the weekly chart and long-term
The short-term trend was very mixed, in order to have the best trades, we should be able to identify the main trend, we overviewed this currency from the weekly chart last weekend.
Since1985, in weekly chart the general structure of the sides has been triple:
The “W” Wave has extended in the form of 3 waves up to the range of 2.0100.
The “X” Wave, is completed as an Expanded Flat Pattern in the range of 1.1445. According to the structure of the Expanded Flat pattern, the C wave of that should be in the form of 5 waves, which in our analysis is the format of Ending Diagonal pattern, in addition, the convergence structure in MACD and RSI, is quite clear. In order to get the confirmation for the uptrend and the completion of this pattern, the price needed to cross the level of 1.4377, albeit with 5 uptrend waves.
( Weekly Chart )
In the daily chart:
With completion of the “X” wave with an Expanded Flat Pattern in the range of 1.14098, the bullish trend has started with 5 uptrend waves, currently, the price is completing the “V “wave from the point “1”. If the bullish analysis goes in the right direction, the price should not test the wave “1”, i.e. the range of 1.2647.
The point is that, we may encounter an (Extended Wave) in the “V “wave, which might continue up to the range of 1.4376, by crossing the price from this region, the uptrend will be confirmed.
( Daily Chart )
In the 240-minute chart
The details of the wave count are well defined, in addition the range of 1.2675 is a very important level to support the uptrend rally.
Since1985, in weekly chart the general structure of the sides has been triple:
The “W” Wave has extended in the form of 3 waves up to the range of 2.0100.
The “X” Wave, is completed as an Expanded Flat Pattern in the range of 1.1445. According to the structure of the Expanded Flat pattern, the C wave of that should be in the form of 5 waves, which in our analysis is the format of Ending Diagonal pattern, in addition, the convergence structure in MACD and RSI, is quite clear. In order to get the confirmation for the uptrend and the completion of this pattern, the price needed to cross the level of 1.4377, albeit with 5 uptrend waves.
In the daily chart:
With completion of the “X” wave with an Expanded Flat Pattern in the range of 1.14098, the bullish trend has started with 5 uptrend waves, currently, the price is completing the “V “wave from the point “1”. If the bullish analysis goes in the right direction, the price should not test the wave “1”, i.e. the range of 1.2647.
The point is that, we may encounter an (Extended Wave) in the “V “wave, which might continue up to the range of 1.4376, by crossing the price from this region, the uptrend will be confirmed.
In the 240-minute chart
The details of the wave count are well defined, in addition the range of 1.2675 is a very important level to support the uptrend rally.