Even though we can count a clear 5 waves up for GBPUSD with a nice reaction at a cluster of Fibonacci levels, I believe that GBPUSD still hasn't finished its move up.
1) Elliot wave : On the 1h timeframe, the moves seems to have completed an extended wave 3 and therefore we still have to see the final wave 5.
2) RSI: We don't really see anything alarming yet. Not a significant bearish divergence or first signals that the trend has changed.
3) Trend: The trend is clearly up on the 4h timeframe. We have a long series of higher highs and higher lows. Until proven otherwise we should stick with the trend.
Overall, if the market was ready to reverse and retrace 50-61.8% of the entire move, I would expect the market to do it with much more strength. The rejection from the highs is currently sloppy and sideways, therefore looks more like an accumulation rather than a reversal.
With all that in mind, I am expecting GBPUSD to break through the current cluster of Fibonacci levels and reach the 2nd cluster between 1.178-1.183..
If the market moves below 1.15034 I will give up on this idea and move on to another opportunity. That's exactly where my stop is.
1) Elliot wave : On the 1h timeframe, the moves seems to have completed an extended wave 3 and therefore we still have to see the final wave 5.
2) RSI: We don't really see anything alarming yet. Not a significant bearish divergence or first signals that the trend has changed.
3) Trend: The trend is clearly up on the 4h timeframe. We have a long series of higher highs and higher lows. Until proven otherwise we should stick with the trend.
Overall, if the market was ready to reverse and retrace 50-61.8% of the entire move, I would expect the market to do it with much more strength. The rejection from the highs is currently sloppy and sideways, therefore looks more like an accumulation rather than a reversal.
With all that in mind, I am expecting GBPUSD to break through the current cluster of Fibonacci levels and reach the 2nd cluster between 1.178-1.183..
If the market moves below 1.15034 I will give up on this idea and move on to another opportunity. That's exactly where my stop is.