Bullish sentiment has reached a dangerous extreme, momentum indicators are showing divergence when approaching the 5th point in this ascending wedge, which can potentially be a leading diagonal type Elliot Wave pattern. Momentum divergence was present in the last push down, which is typical when approaching a bottom. The Bank of England has kept a Hawkish tone recently, which changed the sentiment to bullish for the Pound. Not so positive FOMC minutes helped seal the deal and made cable reach this sentiment extreme. I expect a correction before further advance, which I don't discard. I'd like to see a tradeable formation once this retracement is complete, to then look for long only trades.
According to the gbp index chart I posted, there is a slight probability of some more bullishness in the near future, but right now it needs to correct down.
justatrader
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Yep... dip to 1.52 zone looks very much on the cards.
IvanLabrie
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This should fall straight down:
danndc
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if this is the C wave, it should new lows right?
IvanLabrie
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C wave is more likely...but can also be wrong and just rebound from that low.
We will see soon enough. Big week ahead. Right now you can short and trail stops after crossing that target of mine.
IvanLabrie
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danndc
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don't you think it is going to visit 1.50 after all and such a awful data from UK?
IvanLabrie
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Did you short the top like me and DanV advised?
One step at a time...i want to see five waves down. I'm short from 1.539
IvanLabrie
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Probably time to scale in again, I'll wait for this 4h close: