ridethepig

Dissecting the entire move in Cable (live)

Short
FOREXCOM:GBPUSD   British Pound / U.S. Dollar
We have some time ahead of "House of Commons: Chapter 2" later today so it is a perfect opportunity to start dissecting the moves in cable that have been traded live in Tradingview.

Our first position on the sell-side came in at 1.329 (see attached idea "Selling cable with incoming dollar strength") as we were expecting the highs to be set as markets finished pricing in the expectation of at least a one-quarter 'delay' of Art 50. This '((iii))' leg finished after an inline/soft NFP with 20k jobs killing the flows.

After another soft rally before the "meaningful" vote yesterday we re-engaged selling at the 1.326 level (see attached "An update to cable ahead of the vote"). Those who are paying attention to the 1.311 target managed to book some profits, I know a few from the Forex chat did, which gave us the '((v))' part in our sequence.

Finally we are arriving for the 2nd leg in the 5 wave sequence, we are outguessing that the highs of "iv" will not be taken and looking to swing the enter positions initially towards the 1.28/1.29 area with targets beyond that at 1.24 and 1.21.

Lets see how it goes, feel free to open up the comments below if there are any queries.
Trade active
Trade closed: stop reached
Comment: Pound overshoots on the headline. This one will be painful as we mark the highs in Cable for the rest of the year.
Comment: Here is a quick update to the chart before the next idea is posted...

Comments

Good Morning, stopped by to see what you had going. Looking at your labeling, you got your fours overlapping your twos! Impulse corrections don't overlap, so therefore it has to be corrective behavior. I agree completely with the 5:3:5 that you've properly marked as a-b-c. You'll notice pulling the chart over from the left that it is trading up in less time than the prior down trend, so it properly can be assumed to have ended the prior wave. Since the down wave has entered the territory of the b wave, you can conclude as above that there won't be another :3:5 to add to it making it a larger impulse wave, and this compresses those three waves into a larger degree (a) wave. Same thing with your i-ii-iii, which is really an a-b-c. It too can be compressed into a (b) wave for the same reason. Looking at your iv wave, it is trading up with tremendous force, and has corrected the prior wave in less time than it took to form as well, so therefore completed that iii-c wave. So, looking at the a-b-c up starting on March 11th, it is very likely they also compress into an (a) wave and you see a quick (b) which could already be complete followed by a powerful (c) wave up to form a running flat which would complete the larger structure of 3:3:5.

The Fundamental back drop driving this would be euphoria over Britain finally moving forward with a Hard Brexit since May has run out of options... Happy Trading!
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Those highs will be taken out today...
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ridethepig JoelWarby
@JoelWarby, We'll update the chart as things progress over the coming hours
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100 pip SL hit.. Ouch.
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SELL The Bitch Soon!!!!
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@fxing, language dude!
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You have gone short on the pound? I think the by the end of the week the possibility of remain will become stronger and will provide a bullish move personally.

I have taken 140 pip profit from the brexit votes so far. I have a possible set up pending for later this evening too. Any feedback or thoughts would be appreciated.

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