GBPUSD Wave Count: More Downside Before A Powerful Rally

24 Sep 2016

Hey Traders, it's weekend review time! GBPUSD, originally viewed as a possible flat on an intermediate degree, has broken recent lows. What does this mean? We should expect some lower lows into next week. The double zig-zag has created a new motive wave and is expected to now become a triple zig-zag. This is a great short opportunity if we see a nice pullback. Otherwise, I'll wait for a long opportunity in the PRZ confluence zone. This zone, as shown on the chart, is comprised of two very closely placed pattern completions: bullish shark & bullish crab. If we can get a nice bullish motive wave followed by a correction, in that zone, I'm going long and will post an idea. For now, I would like to short the pair on a pullback and put the stop tightly behind the invalidation level on a lower degree (more on that as the tide rolls). Happy Saturday all!