Sun, Feb 05, 2023 @ 16:39 GMT
HomeTrade IdeasElliott Wave DailyTrade Idea: GBP/USD - Hold short entered at 1.3170

Trade Idea: GBP/USD – Hold short entered at 1.3170

GBP/USD – 1.3101


Original strategy :

Sold at 1.3170, Target: 1.3000, stop: 1.3230

Position: – Short at 1.3170

Target:  – 1.3000

Stop: – 1.3230

New strategy :

Hold short entered at 1.3170, Target: 1.3000, stop: 1.3190

Position: – Short at 1.3170

Target:  – 1.3000

Stop:- 1.3190

As indicated resistance at 1.3230 did cap cable’s upside and the pair has retreated again, retaining our bearishness for the fall from 1.3658 top to resume after consolidation, below 1.3062 support would extend weakness to 1.3039, however, break of previous support at 1.3027 is needed to confirm the aforesaid decline from 1.3658 top has resumed for weakness to psychological support at 1.3000, break there would encourage for subsequent decline towards 1.2950-60.

In view of this, we are holding on to our short position entered at 1.3170. Only above said resistance at 1.3230 would defer and prolong choppy consolidation, risk rebound to 1.3250-60 but resistance at 1.3299 should limit upside and price should falter below last week’s high at 1.3321, bring another retreat later. Our preferred count is that (pls see the attached chart) the wave IV is unfolding as a complex double three (ABC-X-ABC) correction with 2nd wave B ended at 1.2774, hence 2nd wave C could have ended at 1.3658.

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. 


Featured Analysis

Learn Forex Trading