What we're seeing here on GBPUSD is probably a current Elliott 5 wave. We may be at the beginning of wave 4 at the moment.
I believe the completion of wave 4 is at the 0.382 fib retracement of wave 2 to 3. Which is the Grey highlighted box (Around 1.30100 price level)
Seeing as wave 4 should never retrace back to wave 1 price territory, a stop just above the completion of wave 1 is ideal. (Stop - 1.30750)
A target of the 0.786 to the 1-1 fib extension level would make sense to assume our price target for wave 5. (Price target around 1.28350 - 1.27850)
For now, we'll watch price action and see what it is telling us.
I believe the completion of wave 4 is at the 0.382 fib retracement of wave 2 to 3. Which is the Grey highlighted box (Around 1.30100 price level)
Seeing as wave 4 should never retrace back to wave 1 price territory, a stop just above the completion of wave 1 is ideal. (Stop - 1.30750)
A target of the 0.786 to the 1-1 fib extension level would make sense to assume our price target for wave 5. (Price target around 1.28350 - 1.27850)
For now, we'll watch price action and see what it is telling us.
Trade closed: target reached