GBPUSD seems to be making another corrective leg higher. I like to see a consolidation after the bullish response of yesterday. Buying after a consolidation is what I like to do. The confluence zone based on the sell off and wave A of this correction around psychological level 1.30 seems to be a nice target. But that's too soon to tell at the moment.
Updates will follow.
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Guys I didn't like the structure of lesser degree and timing for the bullish continuation and missed the buy. We can't have it all apparently;-). So what am I looking for?
It is very possible that price is unfolding in the shape of a wave 1 of C. If that will be the case I will get another change to buy GBPUSD after a correction and maybe get an even better entry. However if price accelerates higher from here I need to let it go and reevaluate later. On the other hand if price reverses sooner than what I project to be wave 5 I'm good as well. That's because I'm looking for the buy based on the bigger picture and basically am waiting for a significant correction.
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seems like we need another leg higher for wave 'v', however if we see a flag watch for sell.
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I stll expext a move above the origin of wave A. We saw a comparable bullish move before followed by a shallow retrace. I will therefore be looking for a bullish continuation to test at least the high of wave A.
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tomj2417
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Hi Tim. Any thoughts as to what price we should be using for our EW analysis? I read that the recorded flash crash low for the Pound was around the 1.1378 level. The correction to 1.27794 is an almost perfect 38.2 fib retracement from that low.
TimStuyts
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@tomj2417, For now I first need to determine whether in fact this correction isn't over yet. If I see a buy opportunity present itself I will use 1.30 as likely target. But targets are only an indication to me. I will track structure to see what is the most likely outcome because at this moment several structures are still very much possible.