GBPUSD - prefer short-term sells - then time to think
To my mind now it's one of the best trade opportunities to short. With an extremely small S/L around 1,305 (need to check the exact last high point in May)
There are two broad options:
1) Downside (Blue):
Diagonal on the screen is a Leading one in this scenario - after a completed C wave in a huge wave 4 in global downtrend - and price CAN NOT break above it's start (of the Leading Diagonal). Later price will plummet like crazy in a third wave of this scale... Of a huge movement to the lows (somewhere closer Brexit lows). Do you believe in that? May be, may be not. But this is (downside) that everyone was expecting over last months, sure. It has chances to go on, why not )) And R/R ratio is just unbelievable
2) Upside (Red): This option, seemed to be impossible half year ago, when everyone was trading a large triangle in the forth wave to thrust to lower levels. Now you can mark it as a potential uptrend with waves with waves 1-2-3 already in place. And here is the trick: simple EWT rule of alternation - wave 4 should be a flat construction more likely a flat (or a complex triangle, so far difficult even to predict, as they tend to be very tricky) - after a zigzag in wave 2 (to the left on the graph). It means that whether right from current levels or even with a new high above 1,305, price may fall in wave C of a flat correction. How far? Basic assumption will be with fibo relations to the corresponding impulse and no overlap. In case it overlaps, a more immediate bullish count will activate with an extended third wave unfolding. But let's see.
These are working broad alternatives for the next week.
For those, who got stuck in shorts, that is the hope)) Even, if it goes down, there is chance to take profits. Do not panic)) hundreds of points both sides))
There are two broad options:
1) Downside (Blue):
Diagonal on the screen is a Leading one in this scenario - after a completed C wave in a huge wave 4 in global downtrend - and price CAN NOT break above it's start (of the Leading Diagonal). Later price will plummet like crazy in a third wave of this scale... Of a huge movement to the lows (somewhere closer Brexit lows). Do you believe in that? May be, may be not. But this is (downside) that everyone was expecting over last months, sure. It has chances to go on, why not )) And R/R ratio is just unbelievable
2) Upside (Red): This option, seemed to be impossible half year ago, when everyone was trading a large triangle in the forth wave to thrust to lower levels. Now you can mark it as a potential uptrend with waves with waves 1-2-3 already in place. And here is the trick: simple EWT rule of alternation - wave 4 should be a flat construction more likely a flat (or a complex triangle, so far difficult even to predict, as they tend to be very tricky) - after a zigzag in wave 2 (to the left on the graph). It means that whether right from current levels or even with a new high above 1,305, price may fall in wave C of a flat correction. How far? Basic assumption will be with fibo relations to the corresponding impulse and no overlap. In case it overlaps, a more immediate bullish count will activate with an extended third wave unfolding. But let's see.
These are working broad alternatives for the next week.
For those, who got stuck in shorts, that is the hope)) Even, if it goes down, there is chance to take profits. Do not panic)) hundreds of points both sides))