10 days ago I presented two scenario's for GBPUSD and it seems that the bearish outlook is leading at the moment.
Although the recent bearish move suggests a triangle correction for wave 4 to be in place, we need to wait for a consolidation if you are not already in the short.
I didn't trade GBPUSD but traded EURGBP instead. The fact that we are testing the low for either wave B in black or A in red makes this an interesting price zone. If we consolidate and break lower, wave 5 is underway and we can sell the continuation. If however price reverses from this zone we also know what to look for.
updates will follow.
Although the recent bearish move suggests a triangle correction for wave 4 to be in place, we need to wait for a consolidation if you are not already in the short.
I didn't trade GBPUSD but traded EURGBP instead. The fact that we are testing the low for either wave B in black or A in red makes this an interesting price zone. If we consolidate and break lower, wave 5 is underway and we can sell the continuation. If however price reverses from this zone we also know what to look for.
updates will follow.
The lower time frames show a possible first impulse with a correction currently in progress.
However we have to keep in mind that still several scenario's are valid for GBPUSD. Since we are in a consolidation that takes its time we can't ignore the fact that wave 'e' of the triangle will unfold in the shape of another triangle of smaller degree. This is just one scenario and that's not to confuse you but structure can be complex. Assuming what's going to happen is not the same as trading so I will wait for a clear trade set-up.
Updates will follow.