Cable is looking very very interesting for the next few weeks as I have seen a triangle complete; similar to EUR-USD triangle breakout we saw with Trump Presidential win last November. In addition, the timing with Theresa May triggering article 50 UK to leave the EU on the 29th March is impeccable as I anticipate this could be the news that pushes Cable down.
Please see the summary.
Big picture view:
Technical contracting triangle
Medium term view
Count for wave (E) of the triangle has the nature of a triple combo (wxyxz)
Short term view
At the termination of (E), there has been a sharp impulse 5 wave to the downside followed by a correct expanded flat which retraced 50% of the impulse.
The potential of this move based on Count should yield around 500+ pips as the length of the 5th wave breakout from a triangle should be equal to the (A) wave of the triangle.
I'll keep you posted with updates over the coming weeks as the potential to make money here is phenomenal.
Happy Trading all and feel free to comment / ask questions.
As always, market pushes past further than I anticipated but the great thing is the the count is still very valid and there are loads of pips we can take advantage of.
Right now, I am waiting for a wave 1 and a retracement wave 2 to complete to add to my short position so will update you with charts over the next couple of days as the market moves.
The pattern from the top suggest that a possible change in direction is unfolding as I predicted with Brexit article 50 being triggered today for UK to leave the EU.
Based on the pattern, I have seen the following.
Wave 1 - Impulse complete
Wave 2 - Deep Zig Zag retracement which terminated at 0.618%
Wave 3 - Likely wave 3 has terminated as it has extended to 2.618% which is a key fib extension for a wave 3.
Forecast - I am no looking for a shallow flat or triangle retracement around 0.38.2% or 23.6%.
Alternative - Wave 3 could extend to 423.6% or 686% with the news of Brexit so keep an eye on this one.
Feel free to comment or ask questions.