Elliott Wave Daily

Trade Idea: GBP/USD - Buy at 1.2750


GBP/USD – 1.2823

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 1.2750, Target: 1.2950, Stop: 1.2690

Position: -
Target:  -
Stop: -

New strategy :

Buy at 1.2750, Target: 1.2950, Stop: 1.2690

Position: -
Target:  -

As cable retreated after rising to 1.2906, suggesting consolidation below this level would be seen and pullback to 1.2750-57 (38.2% Fibonacci retracement of 1.2515-1.2906) is likely, however, reckon 1.2710 (50% Fibonacci retracement) would hold and bring another rise later, above said resistance at 1.2906 would signal recent upmove is still in progress, 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 1.2940-50 and possibly psychological resistance at 1.3000 would be seen, however, near term overbought condition should limit upside to 1.3050-60. 

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 1.2750-55 is likely, reckon downside would be limited and 1.2700-10 (50% Fibonacci retracement of 1.2515-1.2906) should contain weakness and bring another rally later. Below 1.2690-00 would defer and risk correction to 1.2660-65 but another previous resistance at 1.2616 (wave i top) should remain intact.

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