TimStuyts
Long

GBPAUD; why 1 last leg lower still possible?

FX:GBPAUD   British Pound/Australian Dollar
346 5 7
I posted GBPAUD             earlier and this is the follow up I mentioned.

GBPAUD long term view


Today we see a strong impulse higher, so now we need to watch for a break and consolidation above the non-horizontal trend line (blue) to buy GBPAUD             .

Another approach is to wait for a 5 wave structure higher followed by a 3 wave correction.

However in case of an 'unclear' count I like to count the extensions. We see several overlaps which suggests the corrective structure. This approach is very sensitive but good to keep in mind.

9 waves is an extension of an impulse, where 7 and 11 are extensions of a correction.

I count 9 waves at the moment shown by means of the Red and Green arrows.
Since my long term target is a bit lower as well (2.00-1.98) I keep in mind that we might see another leg lower to complete the 11 waves which suggest a correction as well.

A break lower will activate a sell trade for that 11th wave.

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i think we had our 5th wave down. can you explain why you think the next one is the 5? ..
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TimStuyts wonkytonkydonky
Hey how are you? Good question and I'll try to elaborate on why I expected that last leg lower. My wave count for wave C of wave Y is indicative and you see it a little lower in my first post because my long term target was 2.00-1.98. This is why I was looking for another leg lower:

'However in case of an 'unclear' count I like to count the extensions. We see several overlaps which suggests the corrective structure. This approach is very sensitive but good to keep in mind.

9 waves is an extension of an impulse, where 7 and 11 are extensions of a correction.'

So the green and red arrows show the waves and I am looking for that 11th wave lower since that would indicate a correction.
Hope this makes sense, otherwise send me a private message for my skype details so I can explain in more detail if you like.

Good trading!
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i understand;. , never looked at corrections counts like that.. thanks for the tip
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Hi there, so you think the GBPAUD will reverse and go bear within that bearish channel then reverse back up again when it touches the bottom trendline on the daily and turn into a bullish channel?
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I'm looking for a long term buy, but yes to make it an ideal long term set-up I like to see another leg lower to complete the extended corrective structure. However if we see a clear break-out I will adjust and wait for the next consolidation. Have a nice weekend!
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