See my previous analysis of GBPAUD bigger picture for context.
Whether we see that leg lower (7th arrow as described in previous post) or not, this move up of smaller degree is likely not over yet. We saw a failed retest of what has currently been counted as either 1 or A (RED). This might indicate some kind of 'Flat' correction or maybe a triangle correction. Nevertheless I'm looking for a deeper pullback (wave C) followed by a break out of the upper non-horizontal trend line (RED)
The Ideal scenario for that ABC move didn't happen. However this bullish move is likely not over until we test at least the upper non-horizontal trend line, and I'm adjusting to the next high probability trade opportunity.
I included the RSI to show the divergence sign, although I personally don't use the RSI (rather use the MACD or Awesome Oscillator) you can see the picture what I am aiming at.
We have to wait and see whether a consolidation/correction lower is next, if that happens I will be looking for the break-out for a buy trade.
BeFX
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Hi Tim,
Are you looking for ending second wave to position yourself on begining of third wave? (or you just watching for ABCD correction?)
TimStuyts
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yes I'm waiting for that wave 2 (or B) to complete and then buy the break-out for a long trade for either impulsive wave 3 or C. A more aggressive entry would be to look for divergence between wave A and C preferably at fib support or previous S&R and enter long from a lower time frame.
I included the RSI to show the divergence sign, although I personally don't use the RSI (rather use the MACD or Awesome Oscillator) you can see the picture what I am aiming at.
We have to wait and see whether a consolidation/correction lower is next, if that happens I will be looking for the break-out for a buy trade.