GBPUSD Big move down on the way?

FX:GBPUSD   British Pound / U.S. Dollar
GBP/USD             looks like we are starting a wave 3 of 4. In addition it looks like we have a wedge forming which is a sequence of waves 1 and 2 which could make the move explosive.

Wave 2 stopped in between 50% and 61.8% of wave 1.
Price has keep capped my the weekly ichimoku cloud base

What to look for.
look for a 3 wave move up to form wave (2). When this has formed enter the trade on the break of wave b with a stop above wave c. I will post confirmation when this happens.
The top of wave 4 coincided with a 60 touch RSI
Price is also bound by the monthly ichimoku cloud

If price moves above wave 2 in circle (1.5661) the count is invalid.
A break of the Neckline would also help to reinforce the view that we have a head and shoulders pattern.

My first target id 1.618 of wave 1 which comes in at 1.4693
Breaks of 1.5330 and 1.5170 will add extra confidence to this view.
nice TA mate we almost have the same assumption, some aren't convince that it's going down. It did retrace to 50% and broke the trend line structure. Looking for a short move this week.
AnandYRaja iamdabluebioman
Hi. Thanks for that. I did notice that the consensus is for more GBP strength. However, I noticed a few points on the weekly chart as well

1) The June high (1.5929) coincided with the 1.382 Fibonacci extension of what I have labelled as a-b. So far I have labelled that high as a wave 4 but it may change to a wave 2. Of course if it does end up being a wave 2 the move down will be sharper.
2) When it hit this peak RSI also held the 50-60 Bearish resistance level
3) Finally price is being capped by the base of the weekly Ichimoku cloud and the signal line is also beneath the cloud that signals trend continuation.

Fundamentally I thought it was interesting that on Friday morning MPC Member Broadbent was on Radio 4 saying that there is no rush to raise interest rates in the UK . This was strange as governor Carney did a 1hour press conference the day before.
This week I am looking to a speech by Dudley from the FED today. UK Employment data on Wednesday (especially the average hourly earnings figure). A disappointment with wage raises will certainly push back the date for a BOE rate rise. Finally US retail sales on Thursday, I feel that a beat here would give the FED extra confidence that inflationary pressures are on the rise and increase the probability of a rate rise.

I will be keeping a close eye on the neckline of my original chart and also the 200day moving average. A close below this would increase the probability of this idea in my opinion.

EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out