GBPUSD's advance from 1.14062 low is taking the shapes of an Elliot Wave impulse pattern.
According to Elliot Wave theory, impulse structure consists of five waves sequence, three of the five-wave move in the direction of the trend while the other two move alternate the larger trend.
In GBPUSD's case, I'm focusing on the corrective pattern in wave (4) of iii which is unfolding as a flat pattern. The pattern which is about to complete will give us a buy trade opportunity in wave (5) of iii.
What's really interesting is that the alternation guideline is being followed. The guideline stated that if wave (2) is a sharp correction, then wave (4) will be most likely a sideway corrective pattern, vice-versa.
Entry Idea
Wait for price to retest the 38.2 Fib area, then watch out for the break of the blue line for buy confirmation.
What's your view on GBPUSD?
According to Elliot Wave theory, impulse structure consists of five waves sequence, three of the five-wave move in the direction of the trend while the other two move alternate the larger trend.
In GBPUSD's case, I'm focusing on the corrective pattern in wave (4) of iii which is unfolding as a flat pattern. The pattern which is about to complete will give us a buy trade opportunity in wave (5) of iii.
What's really interesting is that the alternation guideline is being followed. The guideline stated that if wave (2) is a sharp correction, then wave (4) will be most likely a sideway corrective pattern, vice-versa.
Entry Idea
Wait for price to retest the 38.2 Fib area, then watch out for the break of the blue line for buy confirmation.
What's your view on GBPUSD?