A flat correction in EW analysis is a 3-3-5 pattern. Wave B of a flat may surpass the extreme of wave A. Wave c must be an impulse. Here the requisites of a flat corrective count are met where wave V is an exciting ending diagonal - exciting because, like triangles, ending diagonals reverse sharply, and travel at least to the beginning of the move quickly. I believe we will begin trending towards new lows in the GBPUSD, and EURUSD as well from this point. Im not overly bearish however, I believe these will be the last lows for a fair amount of time. See my link below for an example of how this count should play out.
hi chess, what is your opinion on this pair at the moment? maybe your count could start from your point II. yesterday we broke the wedge, does it mean anything?
danndc
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what is your opinio for this pair at the moment?
it broke the trend line, where do you think it will aim?
chessnut
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target is the same, imo still bound for new lows
danndc
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so do you think it could break 1.4950? what about 1.52 zone? do you think it will rebound for new highs from there?
chessnut
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nope, i think if it goes down here its not coming back for some time. 1.49 will fall.
danndc
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what about 1.52 area? all other charters are thinking about a rebound from that level. what do you think?
danndc
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do you think it can be still used?
chessnut
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yes it is still very bearish as per the link above but shorts will require a greater tolerance for bullish action.
danndc
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what do you mean for tolerance? do you think could have been formed a double top reversal?
chessnut
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i mean there might be a bit more to the upside but it is still very limited in terms of the bigger picture