To come up with this trade idea, I have analysed the Daily, the 240 minute and the 60 minute GBP/USD Charts using the Elliott Wave analysis in conjunction with Fibonacci Ratios. Holding Period for this trade would be relatively moderate.
Looking at the Daily Chart of the pair it is quite evident that the pair is retracing a previous strong bullish movement. Ideally (in my opinion), the pair should retrace to at least 1.53000 level. According to my analysis, at present, we are in the wave B -which has exhausted or will soon exhaust-of this large move. I will be waiting for this wave to end and will be taking a short position on the breakout of the inclined support line (indicated in red-dashed).
It is also very much possible that this wave has already concluded, as there was a strong bearish signal on Ichimoku Cloud on Friday, just before the market closed.
Looking at the Daily Chart of the pair it is quite evident that the pair is retracing a previous strong bullish movement. Ideally (in my opinion), the pair should retrace to at least 1.53000 level. According to my analysis, at present, we are in the wave B -which has exhausted or will soon exhaust-of this large move. I will be waiting for this wave to end and will be taking a short position on the breakout of the inclined support line (indicated in red-dashed).
It is also very much possible that this wave has already concluded, as there was a strong bearish signal on Ichimoku Cloud on Friday, just before the market closed.