GBPUSD Long - Fallind Wedge Pattern
Updated
Let's dive into the setup:
After completing the 5th elliott wave, which I have happily traded and you can see how it went on my twitter account, and a double bottom so clean that I didn't take advantage of, it went on to touching the higher trend line of a falling wedge pattern. The astonishing speed with which it arrived there, led me to believe that last LL and its subsequent rebound is just the lull before the storm.
As you can see from the chart of the DXY, it looks as if the dollar is retracing after a big downside symmetric triangle breakout; if it also breaks the lower trend line of this pennant pattern, we could be heading south.
Moreover, tomorrow is NFP day, so keep a close eye on the market if you have open positions or plan to open one. It's not like the old wild days of huge movements, but it could pose some risks.
After completing the 5th elliott wave, which I have happily traded and you can see how it went on my twitter account, and a double bottom so clean that I didn't take advantage of, it went on to touching the higher trend line of a falling wedge pattern. The astonishing speed with which it arrived there, led me to believe that last LL and its subsequent rebound is just the lull before the storm.
As you can see from the chart of the DXY, it looks as if the dollar is retracing after a big downside symmetric triangle breakout; if it also breaks the lower trend line of this pennant pattern, we could be heading south.
Moreover, tomorrow is NFP day, so keep a close eye on the market if you have open positions or plan to open one. It's not like the old wild days of huge movements, but it could pose some risks.
Trade active
Having closed above the first resistance I've moved the stop loss slightly higher to bring down riskTrade closed manually
I think it will take some time to retrace and/or lateralize, so I'll consider reentering once the conditions are met
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