GBPAUD short term short before major move higher
For my previous posts and context see below. I'm looking for that last leg lower before I want to buy GBPAUD long term.
We see price testing the upper trend line of the wedge several times. We are also able to spot a bearish harmonic BAT pattern. I only use harmonics for price indication (only BAT). What makes this harmonic relevant for a possible price pattern is the convergence of price in a crucial zone.
The wave pattern of larger degree indicates another leg lower to complete this correction on the daily time frame. In terms of Elliott Wave we might see a wave A-B in red. I will be looking for a red wave C lower to be next. This wave C most likely has 5 inner waves which will help me to spot high probability trades.
Therefore I will be looking for clues on lower time frames. For a short trade I need a break followed by a consolidation before I sell (in terms of Elliott Wave this means a wave 1-2, sell wave 3 or wave 3-4, sell wave 5). This way I can minimize my stop loss and trade with a great Risk/Reward.
Trade with care and wait for the confirmation since we are ending a corrective structure and this pair wants to move higher sooner or later. If we don't get the sell signal, I will simply wait for the market to confirm to me that the bullish trend has taken over which will present plenty of new trading opportunities in the near future.
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We see price testing the upper trend line of the wedge several times. We are also able to spot a bearish harmonic BAT pattern. I only use harmonics for price indication (only BAT). What makes this harmonic relevant for a possible price pattern is the convergence of price in a crucial zone.
The wave pattern of larger degree indicates another leg lower to complete this correction on the daily time frame. In terms of Elliott Wave we might see a wave A-B in red. I will be looking for a red wave C lower to be next. This wave C most likely has 5 inner waves which will help me to spot high probability trades.
Therefore I will be looking for clues on lower time frames. For a short trade I need a break followed by a consolidation before I sell (in terms of Elliott Wave this means a wave 1-2, sell wave 3 or wave 3-4, sell wave 5). This way I can minimize my stop loss and trade with a great Risk/Reward.
Trade with care and wait for the confirmation since we are ending a corrective structure and this pair wants to move higher sooner or later. If we don't get the sell signal, I will simply wait for the market to confirm to me that the bullish trend has taken over which will present plenty of new trading opportunities in the near future.
www.timstuyts.com
facebook/timstuyts/
