JWagnerFXTrader
Long

Alternative Count for Diagonal Pattern - 1.4639 Key Level

FX:GBPUSD   British Pound/U.S. Dollar
1345 6 23
Last week, we shared an Elliott Wave count which was medium term bullish based on a diagonal pattern that may be ending soon.

Today, I would like to add a little twist and another variation of the count. The resolution is similar to the post from last week except prices may dig a little deeper.

Under the count above, 1.4639 is the key level that keeps ( iii             ) from being the shortest of waves (i), ( iii             ), (v). So if we get down into the 1.47 handle, a good risk to reward ratio opportunity develops to the long side using 1.4625 as a stop loss.

One other interesting point, the blue and red shaded areas represent a 3 standard deviation for the past year. Oddly enough, the 3 SD             comes into play near 1.46. Therefore, I am more interested in GBPUSD             to the long side over the medium term.

Keep an eye on the sentiment reading through the real time Speculative Sentiment Index. If this reading continues to grow, that could become a head wind for the bullish outlook.

Remember, this is just another variation of the diagonal count from last week. A break above the red or purple resistance line would indicate the diagonal could be over. A pattern we're watching on the GBPJPY             also appears to have some bullish juice in it as well.

Happy trading!
Comment: Sterling sits on top of the key level identified in the original post (currently at 1.4640). If it is going to move higher, it must do so now or the count above is negated.

EUR/USD is sitting on some minor support as well.

However, real time speculative sentiment index is a head wind. Sentiment is growing towards more longs (GBP/USD at +2.9 & EUR/USD at +1.1) so we have an elliott wave count conflicting with sentiment. Not a lot of conviction on this long, but might be worth a tight stop.
agree with you mate.
DESCENDING TRIANGLE FORMATION
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THIS IS MORE ACCURATE
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i think sir party is over for the bulls for now bear are in full control as we can see two very nice bearish pin bars and the full bearish bar confirming that bulls can not come until we touch the 1.45
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gbpusd,daily, 2200 pip trade setup !
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Nice - the sentiment readings are worrisome. Nice upside if it works...
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