Pounddollar
Ending Diagonal - unfolding correction trade
-- wave 5 looks to be unfolding into an ending diagonal.
-- trade is valid only if price keeps behaving within the EW ending diagonal principles
-- wait for 2 sets of abc completing 4 and 5 moves before considering a trade.
-- targets Fib retracement
-- remember to take profit, a shallow retracement is possible
-- see daily chart attached
Trend is your friend, GBPUSD Longtrend is still intact, I know there is a lot of reasons to go short here, but trend is your friend, as long as it holds I'll be looking for longs.
details in the chart
see below a 1h zoom in and related ideas
POTENTIAL LONG ON GBPUSD @ 1.57000With Cable (GBPUSD) in an uptrend, it is good to join in the established trend in a price area that is low risk.
Price should head up and out to ~1.5900. The first target will be 1.5820 for a reward of about 3.5xRisk.
The strong move away from the zone shows the trend could find new strength when prices pull back.
However, a trend reversal seems close (1.5950)
EP: ~1.57000
SL: ~1.56500
TP: ~1.58200 (maybe 1.59000)
R/R: 3.5:1
POTENTIAL SHORT ON GBPUSD @1.5818The strong fall from 1.5818 suggests a move down from the area is possible on the next arrival.
The 30 pip risk in this zone, should it work, gets a reward of about 4:1.
The pair is in an uptrend. But the chart suggests that the end is near.
This is a counter-trend trade for 120 pips before the main trend continues.
Price needs to rally up into the zone in the coming week.
EP: ~1.58180
SL: ~1.58480
TP: ~1.56980
R/R: ~4:1
GBPUSD: The Week Ahead (Day 5)On Thursday the GBPUSD broke a very important structure level around the 1.58 even handle. Since that moment I had to redo my I.P.D.E. and shift my focus from a potential short at that area, to a potential long to hop on the underlying trend. In yesterday’s update I told you guys that I was looking for a retracement and you know what it looks like we’ve got one, or are in the process of getting one.
I initially thought we had a Bat pattern completion setting up but our “B” leg comes in a little too deep. So shifting back to harmonics and structure an AB=CD pattern would put us right at our previous outside return, which lines up right with that structure level that was broken earlier in the week. We have a minor Fibonacci retracement down there as well (for those using the CTS) but the main thing is structure at that key level. Could be a demand zone as well for those who are into that.
Technically the “A-Kill” zone starts a little bit higher at the 1.5850’s levels, but I think the lower level will provide the least amount of risk. Either way if you’re a trend following trader and believe that this market is going to continue bullish then both levels would be buying at a bargain price.
Hope you guys enjoyed this week of walking through a single chart. My question for you guys is next week would you like me to continue with this same pair, or pick something different? Please let me know and if there’s a pair you have in mind shoot me those ideas and I’ll pick one over the weekend.
Have a great end of the week, and if you missed my ideas on USDCAD, GBPAUD and the Short Film that I shared representing the everyday battle that is trading. Make sure you check out my latest trading video. www.youtube.com
Until next week traders, Plan Your Trade, Trade Your Plan and have a fantastic weekend!
Akil Stokes
Chief Currency Analyst at www.TradeEmpowered.com
$GBP/USD Short Term Elliott Wave Update 5.15.2015Decline to 1.5087 completed wave (X), and rally from this level is taking the form of a double correction ((w))-((x))-((y)) where wave ((w)) ended at 1.5523 and wave ((x)) ended at 1.5351. In yesterday's $GBP/USD Elliott Wave 5/14/2015 update (see related ideas), we said wave ((y)) of W can test as high as 1.5785 - 1.5820.
Current Elliott Wave short term view suggests wave W ended at 1.5815, and the pair has started wave X pullback to correct the cycle from wave (X) at 1.5086. Wave X pullback is taking the form of a double corrective structure ((w))-((x))-((y)), and wave ((w)) of X is currently in progress towards 1.569 - 1.5707, then it should bounce in wave ((x)) before the decline resumes to complete wave X.
Wave X may reach as low as 1.5365 - 1.5451 (50 - 61.8 back of rally from 1.5086), although it can end before that in 3, 7, or 11 swing. Target area for wave X can be better measured as wave ((w)) and wave ((x)) complete later.. We don't like selling the proposed wave X pullback. As far as 1.5086 level holds in the pullback, we expect buyers to appear after wave X pullback is complete in 3, 7, or 11 swing for continuation higher.
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Twitter: cmellon1976
Website: elliottwave-forecast.com
GBPUSD POTENTIAL LONG @ ~1.52480I have been following GBPUSD since the last week in February (24/02/2015) and got in on a short (with a limit order filled on 26/02/2015) of the pair @ ~1.55500.
I racked up 140 pips by the end of day but I locked in 110 pips and let the market kick me out.
The market is moving back towards the bigger picture demand zone below @ ~1.52480 which should see a bounce (as it is the 0.50 of the prior up swing) .
The bigger picture trend is down so profit margin will be limited to the forming of a strong supply on approach to the demand zone.
Look for good reward:risk ratios (3:1 at least). A bounce from the demand zone should send the market back up to ~1.55500.
This will be affected MASSIVELY by news on Friday. Hopefully, the news pushes price right into the zone.
A 60-pip stop loss is not my type of risk. I'll wait for the market to penetrate the zone and the reverse before entering on exit from the zone.
Example of Rising wedge in GBPUSD 4H TFThis is a pure example of Rising wedge chart pattern to trade on.
This pattern is bounded by two converging trend lines. We know this pattern is usually traded for a reversal trend. It is a bearish pattern which signals us the pair is likely heading downward.
Though, it is also indicates that a continuation of the trend. If it fails to break the bottom trendline (Support) and which can lead us to have new high.
Everything is depending on the trendlines are broken or not.
