I expect 2 waves up in m-term before l-term bear market unfolds.
m-term buy targets: 1.31 and 1.38.
s-term buy targets: 1.2656, 1.2928 and 1.3369
GBP long term sell opportunity will occur in future (maybe in late May).
close look at expected price action on Monday.
Idea of this m-term buy setup is based on assumption that bull market = bear market in time (or fib related).
In my view red wave 4 is correcting big bear market (wave 3 red), which started in summer 2015 and finished in october 2016. so next big bear market should started only after previous big bear market would be properly corrected in price and time.
so next big bear market is expected to occur in summer. after at least 1.32 would be reached.
inside wave C: wave 1 has a 5 wave structure, which currently is being correcting by ABC pattern. this abc now looks like a new big bear market. but price moves pretty slow to be a true big bear market. so take it on your account.
I expected this kind of corrective structure originally.
This m-term buy setup is actual till price does not breaks 1.1985 (wave 1 start )
1.2187 (was reached); 1.2116; 1.2003
look for divergence for confirmation of weakness in trend
and watch breakout to buy it.
1.2153, 1.2124, etc
conclusion. don't overtrade on 5th wave of 5th wave. (targets were calculated by wave 5 of lesser degree price action) wave 1 = wave 5
I closed only 1/6 of possition by 1.217, rest by 1.219. I could fix much better profits.
ok, looks like GU completed the structure.
watch this breakout for confirmation!
wait for correction to buy it. it should make a flag sooner or later.
major flag is not broken. it was just touched.
wait for correction of recent bull market that look for buy setups.
wave B might be a triange
(c)=2.618 of (a)
then it made an impulse and corrected that. c=0.618 of a
flags were broken
wave B triangle scenario might still be valid.
my main scenario works well.
if recent correction is over, gbpusd is likely to hit 1.2969 in short term. after that bigger correction is expected.
3rd wave inside 3rd(green) inside (3)rd was completed. - best buying opportunity.
now 5th wave inside 3rd(green) inside (3)rd is forming.
divergence is present.
a correction of greater degree is expected to unfold.
so recent impulsive drop in gbpusd might started a new 5th major wave (red).
target based on wave 1 extension are: 1.17 and 1.00
coment: sentiment indicates that there were more sellers than buyers during gbpusd uptrend (march 2017 - january 2018) most time.
it's unusual for major bull market.
but it may be explained with fact that 2017 uptrend looks like correction of 2016 bear market. 2016 drop was much faster in comperision to 2017 rise.
so market sentiment was showing sellers majority.
there was unusual correlation between sentiment and price action of gbp pairs.