I have been analyzing the GBP/USD chart on a 15-minute timeframe and I'm seeing a clear setup for a short position. Here's my detailed plan based on the Elliott Wave analysis:
- Entry Point: I plan to enter a short position around the current price level of 1.28217 USD. This level aligns well with the end of wave (5), indicating the start of a potential corrective phase.
- Targets: My primary target for this trade is around the 1.28077 USD level, which is the 50% Fibonacci retracement of the recent upward move. If the correction continues deeper, I will look to the 1.28023 USD level, which corresponds to the 61.8% Fibonacci retracement.
- Stop Loss: To protect against potential losses, I will set a stop loss slightly above the high of wave (5), at around 1.2835 USD. This level is chosen to allow some room for market fluctuations while keeping the risk manageable.
- Trade Management: I will closely monitor the price action as it approaches the target levels. If the price shows strong support at the 50% Fibonacci level, I may consider adjusting my stop loss to lock in profits. If the price continues to move towards the 61.8% level, I will maintain my position and adjust my stop loss accordingly.
This setup provides a good risk-reward ratio and is based on a clear Elliott Wave pattern. By following this plan, I aim to capitalize on the expected downward movement while managing risk effectively.
- Entry Point: I plan to enter a short position around the current price level of 1.28217 USD. This level aligns well with the end of wave (5), indicating the start of a potential corrective phase.
- Targets: My primary target for this trade is around the 1.28077 USD level, which is the 50% Fibonacci retracement of the recent upward move. If the correction continues deeper, I will look to the 1.28023 USD level, which corresponds to the 61.8% Fibonacci retracement.
- Stop Loss: To protect against potential losses, I will set a stop loss slightly above the high of wave (5), at around 1.2835 USD. This level is chosen to allow some room for market fluctuations while keeping the risk manageable.
- Trade Management: I will closely monitor the price action as it approaches the target levels. If the price shows strong support at the 50% Fibonacci level, I may consider adjusting my stop loss to lock in profits. If the price continues to move towards the 61.8% level, I will maintain my position and adjust my stop loss accordingly.
This setup provides a good risk-reward ratio and is based on a clear Elliott Wave pattern. By following this plan, I aim to capitalize on the expected downward movement while managing risk effectively.
Trade closed: target reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.