GBPUSD short term buy, then sell

FX:GBPUSD   British Pound / U.S. Dollar
258 3 11
For my previous post and context have a look at my previous post below:

Short term we might see at least one more leg higher. This might provide a buy day trade opportunity,
However I think that in terms of the bigger picture there is more bearish price action to come which will provide another sell opportunity once this consolidation is over.
Comment: I'm very precise in what I look for in a trade set-up and the previous correction did not unfold the way I like to trade them. Nevertheless we see another opportunity present itself and this is why I can wait for certain set-ups before I trade. There will be plenty of opportunity to trade the right set-ups.

Comment: These are the two trade scenario's I'm looking for in terms of trading opportunities.
We either see a deeper correction towards the upper structure zone shown by means of the non-horizontal trend line. (this will also result in closing the gap). However the current move higher is corrective so in case of a deeper retrace we should see a corrective wave lower for a wave B first. This move lower will determine what's next because since the current 'bullish'/sideways' move is corrective a bearish break and continuation is also possible. Therefore I will wait to see how the next move lower will unfold, will it be an impulse or another corrective leg?

Hi, nice charts as always.

When you say you are quite precise in what you look for in a trade setup. For entry are you looking for 1. structure, 2. break of a trendline for confirmation of direction, 3. pullback - consolidation (corrective wave I assume...) of a lesser degree? Is that right?

Occasionally you will say buy/sell on breakout instead of wait for consolidation...Or does that still come under 3. pullback - consolidation of a lesser degree?

TimStuyts erniegerdie
Hello, when I say buy on break-out we often already saw an impulse of lesser degree so then the process is a bit further and almost ready to trade. In terms of what I'm looking for, yes you are right. Key for me is structure and once that is clear I start to build a case of how I expect price to unfold next. This can differ due to price action so this is not always the same. In terms of break out of a trend line, that depends. My wave analysis, especially of inner waves, tells me often whether or not to buy the break out (AUDNZD analysis was an example of a trade where I didn't trade the break-out or EURGBP, which I both updated today in case you are interested). The safest trade in general is to wait for an impulse to break out of a corrective structure and then trade the continuation after a smaller consolidation. Hope this answers the question, when my website is ready I have a better way to show my approach, unfortunately that takes a bit longer than expected but should be launched soon.
Good trading to you!

erniegerdie TimStuyts
Thanks this is the answer I was looking for. I'm learning to read the waves on the higher degree, however I have been looking for what to look for on the lower TF for entry signals. I'm currently looking for entries before the break occurs as well as those after... I'm learning that patience is really key with elliot wave trading!
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