DeftFX

Cable: EW 3 wave, or b wave for either flat or zig-zag formation

FX:GBPUSD   British Pound/U.S. Dollar
I have combined analysis from @IvanLabrie (link to his chart in related ideas, check screenshots in comments) with my own to form this prediction.

Ivan believes that a Elliott impulse wave has formed for the green numbers, with a corrective wave being formed; currently a possible b wave. Using my channel as a base I came up with the idea that Ivan's EW pattern was part of a larger EW highlighted by the blue numbers and that the wave currently forming is a 3 wave that has bounced of a different 50 fib (chart was too messy to leave all the fibs on). However due to the sharpness of the blue 2 wave (often a trait associated with an impulse wave) I am leaning more towards the green numbers/ letters.

I will be waiting to see what this wave turns into. I will look to go long for a blue wave 3 if it breaks 1.59 with a TP around 1.62.
If this level fails to break we should see a reversal and either a flat structure where I would TP around 1.52, but if it carried on to drop as a zig-zag formation then my TP2 would be at around 1.50 above the green c.

*edit* Forgot to add an entry for the reversal. I would look to short after support broke at 1.56.


I have added in a weekly chart that would suggest that price will eventually be heading down as it has already bounced off near the 50 fib. However due to the length of the impulse wave on this weekly chart I believe that price could rally back up to retest the 50 fib before heading back down again.
Price does look to be bearish overall although in a corrective pattern currently on the weekly chart.

snapshot
*edit* That should be a number 3 on the weekly chart, but as I put correction instead of 2 I put the wrong number

I would like to thank Ivan for allowing me to combine his analysis with my own to publish.
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