EUR/GBP: Updated options... First: H&S neckline re-test?
CURRENTLY: Short from 0.7850 with partial profit at 0.7650 and SL at BE and also a new long from yesterday at 0.7654 based on a possible Gartley at support, SL at BE, TP1 is 0.7760 and TP2 is 0.7830...... (after the facts so not drawn here, too late to enter also, chart crowded enough already...).
Bigger picture (see weekly): possible wave 3 at the high (H&S head?) but the subwaves were hard to count so may be inaccurate...
Anyway the move down from the high looks very much like an ABC zigzag...
Not sure if this possible C wave is over yet though..., harmonic AB=CD didn't complete..., bounced from minor support but more obvious support is lower down..., we'll see...
What I will be looking for next:
Possible H&S neckline coming up in the region of Gartley TP1..., if we get a rejection there I might re-short... Next short level is 0.7830 (Gartley TP2) but the higher we get, the less likely we go back down... Target for shorts from there: 0.7580.
Alternative option (premature): For now we didn't reach the XA extension level for a cypher C yet..., min. is 1.27 ext. at 0.7632..., possibly down to 1.41 ext. at 0.7578 (close below will invalidate cypher...). It's there in the background for reference until I get confirmation of (in)validation.
If we get back down to complete the AB=CD, Cypher C and/or Shark B around support I will phase in new longs at 0.7580, 0.7555 and 0.7530 targeting a possible wave 5 up...
Target for long from there depends on how low we retrace and what pattern develops, Cypher will complete around 0.8000 (round level...) and possible shark will complete beyond the recent high (circled 3), PRZ min. at 0.8131... From there look for 5-0 completion at 50% retracement of the shark completion leg (new long opportunity...)
A lot to keep in mind but I like to keep my options open...
Important now to watch PA around H&S neckline, if we see 5-wave pattern developing on hourly TF's then we may not get back down and just continue up from here to possibly complete the shark BC leg... The shark is valid in any case since we made the required 1.13 XA ext. at B (watch out shark labels not added, shark is not denominated as XABCD but as 0XABC with D the 5-0 completion...).
IMPORTANT: SEEK CONFIRMATION ON WAVE STRUCTURE OF THE RECENT UP MOVE:
- 3-WAVE IS CORRECTIVE >> POSSIBLE MORE DOWNSIDE ON THE C WAVE
- 5-WAVE IS IMPULSIVE >> MAY GO STRAIGHT UP FOR WAVE 5
NOTE: CORRECTIVE A AND C ARE MOSTLY ALSO 5-WAVE SO CHOOSE YOUR TIMEFRAME WISELY AND DON'T JUMP THE GUN...
Bigger picture (see weekly): possible wave 3 at the high (H&S head?) but the subwaves were hard to count so may be inaccurate...
Anyway the move down from the high looks very much like an ABC zigzag...
Not sure if this possible C wave is over yet though..., harmonic AB=CD didn't complete..., bounced from minor support but more obvious support is lower down..., we'll see...
What I will be looking for next:
Possible H&S neckline coming up in the region of Gartley TP1..., if we get a rejection there I might re-short... Next short level is 0.7830 (Gartley TP2) but the higher we get, the less likely we go back down... Target for shorts from there: 0.7580.
Alternative option (premature): For now we didn't reach the XA extension level for a cypher C yet..., min. is 1.27 ext. at 0.7632..., possibly down to 1.41 ext. at 0.7578 (close below will invalidate cypher...). It's there in the background for reference until I get confirmation of (in)validation.
If we get back down to complete the AB=CD, Cypher C and/or Shark B around support I will phase in new longs at 0.7580, 0.7555 and 0.7530 targeting a possible wave 5 up...
Target for long from there depends on how low we retrace and what pattern develops, Cypher will complete around 0.8000 (round level...) and possible shark will complete beyond the recent high (circled 3), PRZ min. at 0.8131... From there look for 5-0 completion at 50% retracement of the shark completion leg (new long opportunity...)
A lot to keep in mind but I like to keep my options open...
Important now to watch PA around H&S neckline, if we see 5-wave pattern developing on hourly TF's then we may not get back down and just continue up from here to possibly complete the shark BC leg... The shark is valid in any case since we made the required 1.13 XA ext. at B (watch out shark labels not added, shark is not denominated as XABCD but as 0XABC with D the 5-0 completion...).
IMPORTANT: SEEK CONFIRMATION ON WAVE STRUCTURE OF THE RECENT UP MOVE:
- 3-WAVE IS CORRECTIVE >> POSSIBLE MORE DOWNSIDE ON THE C WAVE
- 5-WAVE IS IMPULSIVE >> MAY GO STRAIGHT UP FOR WAVE 5
NOTE: CORRECTIVE A AND C ARE MOSTLY ALSO 5-WAVE SO CHOOSE YOUR TIMEFRAME WISELY AND DON'T JUMP THE GUN...
Comment:
Longs stopped out at BE, one short still open, looking to take profit soon..., watch PA for reversal signals between 0.7580 and 0.7500... Possible long from there...
Trade closed: target reached:
AB=CD target reached so closed short from last comment (larger degree bat TP1 also met).
Phasing in longs from here, updated idea:
If you took the weekly bearish bat also: keep short open for TP2 with SL at BE...
Phasing in longs from here, updated idea:
If you took the weekly bearish bat also: keep short open for TP2 with SL at BE...
