For the pattern, the farthest extension is the 2.24. Which in this case, has confluence with the . of the entire previous move up. This consolidation pattern that GBPUSD has been in for a while now could be done at this .618 retrace of the previous wave up. The pattern is just more confirmation of that possibility.
The recent consolidation was just the wave B of that ABC corrective wave and as you can see on the main chart above, I am thinking that this wave B has unfolded in a 5 wave expanding with the 5th wave (wave (e) having just completed*.
If you have followed my posts on this pair, you would also know that I have been for quite a while now. I have been projecting that this pair has another and possibly final move up to complete the wave C of the larger ABC corrective wave. You can read my previous analysis I posted on this pair in the Related Ideas section.
With that, I am now projecting that this pair will begin a prolonged move up from here to finish wave C of the larger ABC corrective wave.
I am now LONG this pair and will hold my LONG positions for the long-term. I have posted the TP1 and TP2 for the pattern. So can take profits there as well. Is it possible that prices will continue to decline? Yes, anything is possible. But if prices do decline past the PRZ of the pattern, I will NOT re-enter LONG until I have done a re-assessment of the situation.
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