GPBJPY-is forming an ending expanding diagonal- huge decline
Hello friends, the market always surprises me when forms a beatiful piece of art.
This analysis is on monthly chart to have a best picture about what this pair is doing. But the price is very close to the key area and we can trade it on D1 chart.
I can see a five wave impulse 1-2-3-4-5 (red)
The fifth wave (red) is unfolding as an expanding ending diagonal labeled 1-2-3-4-5 blue.
The price is about to end the fifht wave (blue) near the trendline resistance (purple). After that according to EW theory we can expect a dramatic fall.
We can see also A PERFECT CONFLUENCE of the 0.61 fib retracement of the whole decline and the 0.61 fib expansion from the beginning of wave 1(red) to the end of wave 3(red).
I like the fib ratio relationships between waves, its another great tool from EW theory.
If this setup works we could catch the start of a huge long term decline.
The sell area would be around the 198.68 and 199.54 area.
Best regards
*****************DISCLAMER********************************************************************
This is just and idea, not a recommendation to buy or sell.
Always do your own analysis before opening a trade.
Managing is 60% of a trade, anytime I may decide not to open, close or even stop and reverse a trade depending on price action.
Any respectful and constructive ideas are welcome.
We all are here to learn sharing ideas, have fun and improve our performance.
This analysis is on monthly chart to have a best picture about what this pair is doing. But the price is very close to the key area and we can trade it on D1 chart.
I can see a five wave impulse 1-2-3-4-5 (red)
The fifth wave (red) is unfolding as an expanding ending diagonal labeled 1-2-3-4-5 blue.
The price is about to end the fifht wave (blue) near the trendline resistance (purple). After that according to EW theory we can expect a dramatic fall.
We can see also A PERFECT CONFLUENCE of the 0.61 fib retracement of the whole decline and the 0.61 fib expansion from the beginning of wave 1(red) to the end of wave 3(red).
I like the fib ratio relationships between waves, its another great tool from EW theory.
If this setup works we could catch the start of a huge long term decline.
The sell area would be around the 198.68 and 199.54 area.
Best regards
*****************DISCLAMER********************************************************************
This is just and idea, not a recommendation to buy or sell.
Always do your own analysis before opening a trade.
Managing is 60% of a trade, anytime I may decide not to open, close or even stop and reverse a trade depending on price action.
Any respectful and constructive ideas are welcome.
We all are here to learn sharing ideas, have fun and improve our performance.