In this technical blog we’re going to take a quick look at the Elliott Wave charts of GBPUSD. As our members know, the pair shows bearish sequences in the cycle from the June 1st 2021 peak. Incomplete structure calls for a further decline. The pair has made 3 waves bounce recently, that has reached our selling zone. We recommended members to avoid buying and keep selling rallies in 3,7,11 swings. In the further text we are going to explain the Elliott Wave Forecast and the trading strategy.
GBPUSD H1 Elliott Wave Analysis 03.22.2022
GBPUSD is correcting the cycle from the February 18th peak. Recovery shows incomplete sequences at the moment. Consequently we are calling for upside in near term toward 1.3298-1.3348 area to complete 2 red recovery. Although expecting more upside we recommended members to avoid buying the pair in proposed push up. Strategy is waiting for Blue Box to be reached before selling the pair. As the main trend is bearish we expect sellers to appear at the blue box for 3 waves pull back at least. Once pull back reaches 50 Fibs against the ((x)) black low, we will make short position risk free ( put SL at BE) and take partial profits. Invalidation for the trade would be break above 1.618 fibs extension: 1.3436
As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a reaction.
Reminder: You can learn about Elliott Wave Rules and Patterns at our Free Elliott Wave Educational Web Page.
GBPUSD H1 Elliott Wave Analysis 03.24.2022
The pair reached equal legs area at 1.3298 and made turn lower from there. We got a decent reaction from the blue box. As a result , members who took short trades made positions risk free ( Put SL at BE) and took partial profits. At this stage we see wave 2 red completed at the current high 1.3300. Decline from the peak looks like 5 waves, which increases chances of further extension down. The price needs to hold below 1.3300 peak for this view to be in place. Break of 1 red low -03/15 is needed to confirm next leg down is in progress.
Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room.
Elliott Wave Forecast
Source: https://elliottwave-forecast.com/trading/gbpusd-selling-rallies-blue-box/