GBPUSD looks ripe for a turn higher.
We've been anticipating for a few weeks a dip in the latter portion of a 4th wave. Now, the dip has come. The bullish outlook for Cable (GBPUSD) is based on prices holding above 1.3483. A print below 1.3483 will create a need to go back to the drawing board for the Elliott wave picture of this market.
There are 2 main scenarios I am following.
The red labels suggest we are DEEP into the 4th wave with one more dip to finish it off. 1.3630-40 zone is the anticipated reversal point. Once the 4th wave is finished, that means a 5th and final wave to new highs which would be several hundred pips above current levels.
The alternate is the blue labels and path. This suggests the recent low was the (c) wave of the 4th wave. This implies an abbreviated (and probably choppy) rally higher before turning lower again. The rally would have a couple of hundred pips in it so it might be tradeable, but likely a bumpy ride.
Both scenarios above are valid so long as the price holds above 1.3483.
Feel free to post comments or questions below.
We've been anticipating for a few weeks a dip in the latter portion of a 4th wave. Now, the dip has come. The bullish outlook for Cable (GBPUSD) is based on prices holding above 1.3483. A print below 1.3483 will create a need to go back to the drawing board for the Elliott wave picture of this market.
There are 2 main scenarios I am following.
The red labels suggest we are DEEP into the 4th wave with one more dip to finish it off. 1.3630-40 zone is the anticipated reversal point. Once the 4th wave is finished, that means a 5th and final wave to new highs which would be several hundred pips above current levels.
The alternate is the blue labels and path. This suggests the recent low was the (c) wave of the 4th wave. This implies an abbreviated (and probably choppy) rally higher before turning lower again. The rally would have a couple of hundred pips in it so it might be tradeable, but likely a bumpy ride.
Both scenarios above are valid so long as the price holds above 1.3483.
Feel free to post comments or questions below.
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EW Express - bit.ly/elliottwaveexpress
