GBPUSD - Scenario change and the uptrend formation
( Weekly Chart )
At the end of November, we returned to the weekly chart to see the general trend. By drawing the trend line, it became clear that the downtrend line has been broken, in this case, we should not think about the downtrend at all! Also, the structure of the ending-trend waves is in a 3 -wave format, which represents the Diagonal pattern, and due to this pattern and very strong convergence, the scenario change would be obvious. Then let's just think about going long in every decline. The confirmation of this uptrend will be got by crossing the price from the end of 4th wave - 1.4377 - (with 5 uptrends). The formed pattern in wave X is in an Expanded Flat shape, so the diagonal pattern in wave C can be correct.
In the daily chart:
( Daily Chart - Bullish scenario )
The structure of the V wave from the Ending Diagonal pattern in the form of Double zigzag, which is completed in the range of 1.1414.
In continuation, the uptrend is forming the first 5 ascending waves that can cross from the end of the X wave and move up to the range of 1.3948.
Needless to say, this part is quite mixed and the reason is that we can count the movement from 1.1959 to 1.3483 as a Double zigzag pattern, in which the 5th wave from the Diagonal pattern is not ended.
( Daily Chat - Bearish scenario )
In the 240-minute chart, there is no doubt about the structure of the uptrend from 1.1414, and the price will be probably forming another uptrend to complete the 5th wave. (According to the formed triangle pattern). By breaking the weekly trend line, the formation of a bearish scenario is unlikely.
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.