Current wave: topping into wave ‘ii’ (black)
Outlook: lower in wave ‘iii’ black, with a long way down to go. Possible shorting opportunity at the wave ‘ii’ black high.
It was a good day for the GBPUSD wave count, and it always good to get a solid trade in the bag.
all going well that is!
on the hourly chart you can see the day started quite flat and then a blast to the upside in what could be labelled a wave ‘iii’ green given the structure of the action today.
We are definitely in the motive part of the wave form, no doubt there.
Wave 3 of 3 is usually the longest and strongest part of a five wave form, with that in mind,
I have placed an arrow at the longest candle.
this could be the middle of wave three green.
If that is the case then the rally should continue upwards in a series of fourth and fifth waves to complete the larger structure.
You can see that the rally today took out the high labelled wave (a) grey.
This is a good sign that the operating wave count is correct as taking out this high ruled out the bearish alternative.
the next major target is the green line at 13372.
a move past this high would bolster the wave count
which views the whole rally off the lows as a corrective rally, and not a new bull market.
I have protected my position now and I’m happy with that, whatever happen from now on is all a bonus!
I will go through the larger wave count in detail in the weekend video.
- My long trade is performing well, stop is moved to a protective position
- upper target is still in the 13600 region
- next major target is the green line at 13372.