Thu, Feb 09, 2023 @ 11:30 GMT
HomeTrade IdeasElliott Wave DailyTrade Idea: GBP/USD - Stand aside

Trade Idea: GBP/USD – Stand aside

GBP/USD – 1.3150


Original strategy :

Sold at 1.3170, stopped at 1.3190

Position: – Short at 1.3170

Target:  –

Stop: – 1.3190

New strategy :

Stand aside

Position: –

Target:  –


Although cable rebounded again yesterday to 1.3214, as price has retreated again after faltering below indicated resistance at 1.3230, retaining our view that further consolidation would be seen and weakness to 1.3100 cannot be ruled out, however, support at 1.3062 would hold and price should stay above previous support at 1.3039, bring another rebound later. A 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.

On the upside, 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. 

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