GBPUSD has been making steady impulses and correction. From the corrections you can see that they are usually ABC 3 wave corrections but we are now seeing a abcde correction for another move lower.
Watch for rejection of the level indicated and short for the impulsive phase.
The Daily is now on its 5th Bullish candle in a row, very Bullish in this case, so I don’t see evidence on the Daily of price turning around any time soon. On the 8-Hour, price is just beginning to hit the top of the latest in a series of parallel channels, but is still looking rather Bullish. Maybe price has got to get to the upper descending black Daily trend line before we can expect to see it short off? Let’s watch and see how Price Action develops.
WicktatorFX
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@loudon3, Hi Paul! Thanks for your comments and charts! Great to have another viewpoint on this.
To explain my reasoning behind the short, we broke the long term ascending trendline and we seem to be within a channel moving down now. I noticed that with your trendline you didn't connect the wicks with some and with some you used the body. For me personally, it has to be one or the other and I chose wicks instead of bodies. I think that's why our trend lines differ. I definitely agree that there's a lot of bullish pressure now with 5 daily bullish candles. I'm expecting USD strength and GBP weakness which is why I thought this would be a great short.
Let me know your thoughts! :)
loudon3
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@Wicktator, thanks for your notes - all fair comment. I am trying to follow the old maxim, "believe what you see", and it still all looks Bullish to me on both Daily and 8-Hour timeframes. I don't necessarily disagree with you on the prospect for it to short off in a little while, I just don't see it happening now, given that price always takes time to turn around, ie multiple candles at least. If price wants to turn back down, then we will have to see candle deceleration on both Daily and 8-Hour timeframes before that can happen, so let's see how Price Action develops. My experience is that candle "body language" usually tells you all you need to know, and in this case I see no evidence of any deceleration on either timeframe. The next two or three 8-Hour candles should give us a clearer steer. (PS: I take your point about connecting either bodies or wicks - I normally give greater weight to horizontal S+R levels / zones, or intersections between these and diagonal trendines.)
fx_hasibul
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enayat1360
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thank you
uniquetrader8
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I love your chart analysis
Fradman
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Thank you for your charts. They are very clear . Please keep posting these. I find these so useful . So far you have been correct in your analysis