GBPUSD Analysis:Riding the Bearish Wave
Updated
Hello traders,
Here is my EW Analysis of the GBPUSD Currency pair.
Market Sentiment and Wave Count:
My bearish sentiment on GBPUSD remains intact as the price continues its downward movement, It is important to note that the price recently encountered strong resistance at the 1.2746 level, a development that underscores the strength of sellers in the market.
At present, the market is evidently in the process of forming what appears to be an impulsive wave 5. This wave pattern, characterized by its directional nature, signals a high probability of further downward movement.
Price Target:
My expectation is for the price to maintain its downward course, with a potential decline anticipated to reach 1.25016. This price level serves as my designated target for the completion of the major impulsive wave 'V'.
Entry idea:
I suggest considering the initiation of a short position when price breaks the 1.2649 level. This entry point is in line with EW analysis; as a breach of that level is an indication of the continuation of the bearish trend while the invalidation level is 1.28008.
Cheers and Happy trading.
Here is my EW Analysis of the GBPUSD Currency pair.
Market Sentiment and Wave Count:
My bearish sentiment on GBPUSD remains intact as the price continues its downward movement, It is important to note that the price recently encountered strong resistance at the 1.2746 level, a development that underscores the strength of sellers in the market.
At present, the market is evidently in the process of forming what appears to be an impulsive wave 5. This wave pattern, characterized by its directional nature, signals a high probability of further downward movement.
Price Target:
My expectation is for the price to maintain its downward course, with a potential decline anticipated to reach 1.25016. This price level serves as my designated target for the completion of the major impulsive wave 'V'.
Entry idea:
I suggest considering the initiation of a short position when price breaks the 1.2649 level. This entry point is in line with EW analysis; as a breach of that level is an indication of the continuation of the bearish trend while the invalidation level is 1.28008.
Cheers and Happy trading.
Note
Here is an alternate perspective to the analysis above.
In an alternate Elliott Wave scenario, should the level of 1.2649 remain unbroken, and a strong upward movement surfaces, it would be nice to explore this alternative count. In this alternate scenario, the initial downward movement would be classified as a corrective ABC pattern, with the final leg of this correction labeled as wave C, finding its termination point at 1.2547. This would signify the conclusion of the corrective phase and the beginning of the impulsive wave 1.
Under this alternate scenario, we would then anticipate a bullish trend developing, with a determination to ride the move unto wave 3. Our target for wave 3 would be at the level of 1.3079. This alternative view suggests the potential for a strong upward momentum in the market, but its validity would be based upon the conditions outlined, primarily the absence of a break below 1.2649 and the emergence of a strong upward trend.
Note that NFP data will be out in few minutes.
Cheers!!!!
Note
We have made over 120Pips from the specified entry price. I will keep watch price action for any reversal sign. But for now, our bearish outlook is still very much maintained.Cheers!
Trade active
Trade closed: target reached
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