GBP/NZD: Down impulse wave running, adding shorts on rallies
This is one I didn't want to miss! The setup is derived from an idea by anilmangal on this pair. Please note that I am not even close to as knowledgeable on the subject of wave analysis as Anil, and this is merely my own best-effort interpretation of the current situation with regards to GBP/NZD.
That said, I believe that an impulse wave down is now in effect. I'm allready short since I sold into the move yesterday so this is a bit post-fact but I surely wanted to document this for my trading diary!
As long as we don't reach at least the 127.2 extension of the previous impulse down (possible AB of harmonic pattern) I will stay in and try to add shorts on breakouts of 'up' corrections. This 127.2 level is also my initial TP level.
If this move turns out to be harmonic in relation to the previous impulse down then we should eventually end up beyond my first TP level, likely somewhere between the 161.8 and 200% BC extension. My second target is in that area, more precisely where the exact AB=CD pattern would end (price range on chart depicts that level), which is just below the 61.8% retracement of the previous big 'up' impulse, and close to the 161.8 ext. of the previous impulse wave down.
After this down move ends and we get a correction I will wait and see if we get one more impulse wave down to a possible trendline below or if we get a reversal to the upside with completion of a possible harmonic pattern as an extension higher up.
That said, I believe that an impulse wave down is now in effect. I'm allready short since I sold into the move yesterday so this is a bit post-fact but I surely wanted to document this for my trading diary!
As long as we don't reach at least the 127.2 extension of the previous impulse down (possible AB of harmonic pattern) I will stay in and try to add shorts on breakouts of 'up' corrections. This 127.2 level is also my initial TP level.
If this move turns out to be harmonic in relation to the previous impulse down then we should eventually end up beyond my first TP level, likely somewhere between the 161.8 and 200% BC extension. My second target is in that area, more precisely where the exact AB=CD pattern would end (price range on chart depicts that level), which is just below the 61.8% retracement of the previous big 'up' impulse, and close to the 161.8 ext. of the previous impulse wave down.
After this down move ends and we get a correction I will wait and see if we get one more impulse wave down to a possible trendline below or if we get a reversal to the upside with completion of a possible harmonic pattern as an extension higher up.
Comment:
Closed my shorts, now long from 2.1509 and added at 2.1802, let's see if we continue up...
1st long target @ around 2.24
2nd long target around 2.265 if we get past 2.25...
1st long target @ around 2.24
2nd long target around 2.265 if we get past 2.25...
I sure wished I had done so, 300 pips down the drain, I hope we go back down now....