GBPAUD; why 1 last leg lower still possible?
I posted GBPAUD earlier and this is the follow up I mentioned.
Today we see a strong impulse higher, so now we need to watch for a break and consolidation above the non-horizontal trend line (blue) to buy GBPAUD.
Another approach is to wait for a 5 wave structure higher followed by a 3 wave correction.
However in case of an 'unclear' count I like to count the extensions. We see several overlaps which suggests the corrective structure. This approach is very sensitive but good to keep in mind.
9 waves is an extension of an impulse, where 7 and 11 are extensions of a correction.
I count 9 waves at the moment shown by means of the Red and Green arrows.
Since my long term target is a bit lower as well (2.00-1.98) I keep in mind that we might see another leg lower to complete the 11 waves which suggest a correction as well.
A break lower will activate a sell trade for that 11th wave.
timstuyts.com
facebook.com/wwwtimstuytscom/
Today we see a strong impulse higher, so now we need to watch for a break and consolidation above the non-horizontal trend line (blue) to buy GBPAUD.
Another approach is to wait for a 5 wave structure higher followed by a 3 wave correction.
However in case of an 'unclear' count I like to count the extensions. We see several overlaps which suggests the corrective structure. This approach is very sensitive but good to keep in mind.
9 waves is an extension of an impulse, where 7 and 11 are extensions of a correction.
I count 9 waves at the moment shown by means of the Red and Green arrows.
Since my long term target is a bit lower as well (2.00-1.98) I keep in mind that we might see another leg lower to complete the 11 waves which suggest a correction as well.
A break lower will activate a sell trade for that 11th wave.
timstuyts.com
facebook.com/wwwtimstuytscom/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.