HomeTrade IdeasElliott Wave DailyTrade Idea: GBP/USD - Buy at 1.2845

Trade Idea: GBP/USD – Buy at 1.2845

GBP/USD – 1.2963

Recent wave: Wave V of larger degree wave (III) has ended at 1.1986 and major correction has commenced from there for gain to 1.3000 and 1.3140-50

Trend: Near term up

Original strategy :

Buy at 1.2775, Target: 1.2965, Stop: 1.2715

Position: –
Target:  –
Stop: –

New strategy :

Buy at 1.2845, Target: 1.3025, Stop: 1.2785

Position: –
Target:  –

As cable has maintained a firm undertone after rallying indicated previous resistance at 1.2965, adding credence to our bullish view that recent upmove is still in progress and upside bias remains for test of psychological resistance at 1.3000 but overbought condition should limit upside to 1.3050 and price should falter below 1.3100. We are keeping our view that the wave c as well as larger degree wave B has ended at 1.2109, hence impulsive wave C has commenced from there with wave i of C ended at 1.2616, follow by a correction to 1.2365 (end of wave ii) and wave iii rally is unfolding, hence further gain to indicated upside targets would be seen.

Our preferred count on the daily chart is that cable’s rebound from 1.3500 (wave (A) trough) is unfolding as a wave (B) with A ended at 1.7043, followed by triangle wave B and wave C as well as wave (B) has ended at 1.7192, the subsequent selloff is the larger degree wave (C) which is still unfolding with minor wave (III) of larger degree wave 3 ended at 1.1986, hence wave (IV) correction is in progress which could either be a triangle wave (IV) of a complex formation but upside should be limited to 1.3500 and price should falter well below 1.4000, bring another decline in wave (V) of 3 for weakness to 1.1500, then 1.1200.

On the downside, whilst initial pullback to 1.2900-10 cannot be ruled out, price should stay above indicated support at 1.2831 and bring another rise later, Only below support at 1.2757 would abort and signal a temporary top is formed instead, risk correction of recent upmove to 1.2700-10 later. 

Featured Analysis

Learn Forex Trading