Short GBPAUD, Bearish Elliot Wave 5 to start soon.
The whole structure of the bearish move seems incomplete. We could be starting the last leg of a bearish impulse that will target 100% retracement.
Picture speaks a thousand words.
By Elliot Wave of alternation, Wave 2 - Sharp, Wave 4 - sideways corrective moves.
We could be at the final stages of a push lower, with an ending diagonal appearing in Wave Y, C leg of a irregular flat pattern.
Plus point is that carry is positive, so we can hold without cost.
Trade idea,
Short at 1.751
Stop Loss : 1.762 (Since Wave 3 of an ending diagonal cannot be the shortest wave)
Target. 1.45 area. (To be updated as we count the 5 waves lower)
Picture speaks a thousand words.
By Elliot Wave of alternation, Wave 2 - Sharp, Wave 4 - sideways corrective moves.
We could be at the final stages of a push lower, with an ending diagonal appearing in Wave Y, C leg of a irregular flat pattern.
Plus point is that carry is positive, so we can hold without cost.
Trade idea,
Short at 1.751
Stop Loss : 1.762 (Since Wave 3 of an ending diagonal cannot be the shortest wave)
Target. 1.45 area. (To be updated as we count the 5 waves lower)
Comment:
Time of completion of wave 1 is around 6 months. Assuming wave equality. We should expect this pair to trend downwards for the next 6 months.
Comment:
Time to go under the microscope. Let our 3000pip journey begin! (Hopefully)
Prices look to be forming a flat pattern for our wave 2. I'm using 1.76 swing high as the start of our wave 1. If prices do get rejected at 1.752 for wave c of the flat. We are looking for impulsive wave 3 to commence. Using fibo projection, we know that a common level of wave 3 = 1.618 x wave 1. This lands us right smack at the ascending trendline of the ending diagonal wedge at 1.727 area.
Since wave 2 is a corrective sideways flat, we expect wave 4 to be a sharp correction. Which would make it seem like prices bounces off the trendline.
Prices look to be forming a flat pattern for our wave 2. I'm using 1.76 swing high as the start of our wave 1. If prices do get rejected at 1.752 for wave c of the flat. We are looking for impulsive wave 3 to commence. Using fibo projection, we know that a common level of wave 3 = 1.618 x wave 1. This lands us right smack at the ascending trendline of the ending diagonal wedge at 1.727 area.
Since wave 2 is a corrective sideways flat, we expect wave 4 to be a sharp correction. Which would make it seem like prices bounces off the trendline.
Comment:
Covering position. Closed.
Price action doesn't feel like an ED.
Price action doesn't feel like an ED.
W = Irregular Flat (3)
X - ZZ (3)
Y- Ending Diagonal (5)