GBPUSD making a 4th wave

Anticipating the end of an extended 3rd wave. I would like to see a pull back making a 4th wave.
It is possible a fourth wave could break above the trend line and reach the 0.382 Fibonacci retracement.

My target is the 0.618 extension of wave 1 through to wave 3.
This would also give us a break of the previous low at 1.2660.

If my target is met and the previous low of 1.2660 is broken then I will be looking for revarsal set ups for a rally higher.

Pending orders are set at both entry levels.


If targets are reached I will be looking for a reversal to complete an expanding flat.

The flat pattern can be seen easier on the daily chart.

Trade active

Comment:

Wave three turned out to be more extended than predicted and I still think this is the making of wave 4. I don't think this is the rally higher yet and I am still looking for the trade to break the previous low of 1.2660.

However this has been a very strong move up today. The move easily broke through the trend line and triggered both trades. The strength of the move had me concerned for my stop losses as the rally smashed through the 0.382 and 0.50.

I did decide to move my stop to above the 0.618 retracement and I will not touch it again.

If this move up contiues and stops me out then I will need to re-evaluate the larger correction count I made.

Comment:

Trade closed: stop reached