A very promising bullish forecast for GBP/USD thanks to
a bullish Wolfe Wave pattern. I personally prefer Wolfe
Wave patterns slightly over harmonic patterns, not saying
that one is better or more reliable than the other, but on
large time frames Wolfe Wave's can be very profitable as they
set up well for long term swing trades.
But enough about my preferences. At the moment we are
witnessing a confirmation of a trend reversal in GBP/USD,
please see my post from 23.06.2018 for a detailed
description of the trend reversal in progress.
The bullish hammer created last week seemed dismal, but
upon closer inspection what is happening below not only
explains and highlights a bullish trend reversal, it also
supports the notion that price is gathering momentum to
the upside. One could even argue that an Elliott Wave 3 is
forming, which wouldn't be too far fetched since
point 6 of the bullish Wolfe Wave is almost exactly at the
1.618 Fibonacci extension, measured from 1.986 to 1.4377.
But coming back to what is happening below price at the
moment reveals powerful evidence for upside momentum.
1) Looking at price in the highlighted box, you can see
the bearish divergence between price and the 100SMA,
(highlighted in red)
which among other technical indicators, was an
early indicator of a drop in price after the double top.
2) 'Staying in the box', currently we can see bullish
divergence between price and the 100SMA, which is now
forming dynamic support around the yearly pivot point level.
3) RSI convergence: If you look at the RSI after it broke out
from below the 33.33 oversold area, it never once even
touched the 33.33 level again, hence, revealing further evidence
of bullish momentum building up.
Using point 2 of the bullish Wolfe Wave as a target, and
drawing a diagonal line from 1.1986 to where the
extended diagonal line formed from points 1 & 4, you can
see that that target could be hit by Octobre this year.
Some use Wolfe Wave's also to forecast times
of entries and exits, I personally don't, however,
it is interesting to note or mention it - especially if price
does reach 1.5930 by Octobre, in which case I will be
boasting and bragging lol!
Trade long (RvR ratio 2.41)
Entry 1: Close above 1.3835 (Conservative entry)
Entry 2: At market - though best to wait.
S/L: 1.2966
T/P 1: 1.4566
T/P 2: 1.5019
T/P 3: 1.5930
As always, scale out your profits and adjust your stop/ loss
to suit your personal risk management profile.
Happy trading
a bullish Wolfe Wave pattern. I personally prefer Wolfe
Wave patterns slightly over harmonic patterns, not saying
that one is better or more reliable than the other, but on
large time frames Wolfe Wave's can be very profitable as they
set up well for long term swing trades.
But enough about my preferences. At the moment we are
witnessing a confirmation of a trend reversal in GBP/USD,
please see my post from 23.06.2018 for a detailed
description of the trend reversal in progress.
The bullish hammer created last week seemed dismal, but
upon closer inspection what is happening below not only
explains and highlights a bullish trend reversal, it also
supports the notion that price is gathering momentum to
the upside. One could even argue that an Elliott Wave 3 is
forming, which wouldn't be too far fetched since
point 6 of the bullish Wolfe Wave is almost exactly at the
1.618 Fibonacci extension, measured from 1.986 to 1.4377.
But coming back to what is happening below price at the
moment reveals powerful evidence for upside momentum.
1) Looking at price in the highlighted box, you can see
the bearish divergence between price and the 100SMA,
(highlighted in red)
which among other technical indicators, was an
early indicator of a drop in price after the double top.
2) 'Staying in the box', currently we can see bullish
divergence between price and the 100SMA, which is now
forming dynamic support around the yearly pivot point level.
3) RSI convergence: If you look at the RSI after it broke out
from below the 33.33 oversold area, it never once even
touched the 33.33 level again, hence, revealing further evidence
of bullish momentum building up.
Using point 2 of the bullish Wolfe Wave as a target, and
drawing a diagonal line from 1.1986 to where the
extended diagonal line formed from points 1 & 4, you can
see that that target could be hit by Octobre this year.
Some use Wolfe Wave's also to forecast times
of entries and exits, I personally don't, however,
it is interesting to note or mention it - especially if price
does reach 1.5930 by Octobre, in which case I will be
boasting and bragging lol!
Trade long (RvR ratio 2.41)
Entry 1: Close above 1.3835 (Conservative entry)
Entry 2: At market - though best to wait.
S/L: 1.2966
T/P 1: 1.4566
T/P 2: 1.5019
T/P 3: 1.5930
As always, scale out your profits and adjust your stop/ loss
to suit your personal risk management profile.
Happy trading