GBPUSD Long Trade Idea
Updated
I have reinstated my idea on GBPUSD with some minor changes. The structure is more clear now and slightly different than before. We can better define this complex correction and find good accurate entries and exits.
Wave (1) in Blue of Cycle degree completed late last year and since then we have begun a complex corrective sequence to the bearish side. This sequence will unfold in 7 or 11 waves as we decline. In the event of 11 waves we will have profits secured and stops at breakeven. I am projecting 7 waves due to movement of USDX in the next week.
Our entry is wide but be aware it can bounce anywhere in the zone. We should complete wave (2) Blue and begin our impulse wave up and see nice bullishness out of GU for the foreseeable future. USDX is projected to continue its decline as interest rates will eventually begin to fall as the FED loosens their policy. With falling interest rates the dollar will lose momentum and decline. This will allow the Pound and Euro to begin their bullish cycles.
We are looking to catch entry at the corrective extreme of wave (2) and ride the entire impulse wave up. Please manage risk and 1-2% margin per trade. Not financial advice
Wave (1) in Blue of Cycle degree completed late last year and since then we have begun a complex corrective sequence to the bearish side. This sequence will unfold in 7 or 11 waves as we decline. In the event of 11 waves we will have profits secured and stops at breakeven. I am projecting 7 waves due to movement of USDX in the next week.
Our entry is wide but be aware it can bounce anywhere in the zone. We should complete wave (2) Blue and begin our impulse wave up and see nice bullishness out of GU for the foreseeable future. USDX is projected to continue its decline as interest rates will eventually begin to fall as the FED loosens their policy. With falling interest rates the dollar will lose momentum and decline. This will allow the Pound and Euro to begin their bullish cycles.
We are looking to catch entry at the corrective extreme of wave (2) and ride the entire impulse wave up. Please manage risk and 1-2% margin per trade. Not financial advice
Note
Quick note, expect USDX to reach between 104.5 and 105.5 before it tops out and falls. Until it reaches this point I consider the dollar short term bullish on smaller time frames. As long as the dollar holds its recent high from October of last year around 107 then I expect it to continue its bearish decline and GU should resume its bullish impulse upTrade active
Trading has reached the long zone but be careful. We can be sliding a bit deeper here. The structure over the last few 4hr candles is still quite unclear and USDX needs to comlpete its cycles to the upside. I will be looking to snipe an entry but with small positions layering in. The movement can be quick to the downside still. Hopefully we get some bulls to come in and help push the price upTrade active
We hit our target entry zone and I took a small position. I have trimmed with profits for now and set my SL to entry. I will be closing this soon as I see another drop incoming down lower in the zone. I will be looking to enter between 1.25 and 1.24 depending on how price action unfolds. Trade safelyNote
We should be seeng GU finally take its last drop either today or early next week. This drop will give us great entries into a good trade. USDX will be falling. Dollar pairs will be rising. The long trade idea is still valid here we are just waiting for the structure to complete itself. It is bearish and needs one final leg down to complete the sequence. Once completed, our entries will be in, and we ride the bullish move with the buyers to the upside securing profits
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