Elliott Wave Daily

Trade Idea: GBP/USD - Buy at 1.2835

Typography

GBP/USD – 1.2929

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 1.2835, Target: 1.3000, Stop: 1.2800

Position: -
Target:  -
Stop: -


New strategy :

Buy at 1.2835, Target: 1.3000, Stop: 1.2800

Position: -
Target:  -
Stop:-


Although sterling recovered after falling to 1.2893 yesterday, reckon upside would be limited to 1.2975-80 and near term downside risk remains for the retreat from 1.3030 to bring retracement of recent rise, below said support at 1.2893 would extend weakness to previous resistance at 1.2861 (now support), however, reckon 1.2830-35 (50% Fibonacci retracement of 1.2640-1.3030) would limit downside and bring another rise later, above 1.3000 would bring test of said resistance at 1.3030, break there would extend the rise from 1.2589 low towards recent high at 1.3048 but break there is needed to retain bullishness and bring subsequent headway towards 1.3090-00. 

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 is likely, reckon 1.2861 (previous resistance turned support) would limi downside and 1.2830-35 should hold, bring such a rise. Below support at 1.2794 would abort and signal top is formed instead, risk further fall to 1.2750, then towards 1.2706 support.

About the Contributor
Author: Action Forex
More from the contributor