Elliott Wave Daily

Trade Idea: GBP/USD - Stand aside

Typography

GBP/USD – 1.3202





New strategy :

Stand aside

Position: -

Target:  -

Stop:- 



Despite last week’s anticipated fall to 1.3088, lack of follow through selling and the subsequent rebound suggest further consolidation would be seen and test of resistance at 1.3229 cannot be ruled out, however, break there is needed to suggest the fall from 1.3338 has ended at 1.3088, then a stronger rebound to 1.3287 resistance cannot be ruled out, having said that, price should falter well below resistance at 1.3338 and bring further choppy trading later.

On the downside, whilst pullback to 1.3160-70 cannot be ruled out, reckon 1.3115-20 would hold and bring further sideways trading. Only a break below said support at 1.3088 would revive bearishness for resumption of recent decline towards recent low at 1.3027. 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.