GBPUSD Sell potential: Mapping Corrections and Projecting Target
Updated
Greetings, fellow traders.
Let's proceed with our analysis of the GBPUSD pair.
Based on the current price action, it appears that GBPUSD has completed the initial corrective wave A within the broader correction. As a result, the subsequent wave B is currently unfolding and may be nearing its completion.
If this correction follows a simple structure, it is reasonable to expect that wave B will terminate around the price region of 1.25400-1.25650.
However, it's important to acknowledge the dynamic nature of the market, which can introduce sideways corrections, such as an extended flat pattern. In such a scenario, we might witness a significant price rally surpassing the peak of wave A at 1.26788, potentially reaching the price region of 1.27000-1.27330, before the subsequent downward move in wave C.
Before pulling the trigger to trade wave C, I will watch out for confirming price action. A positive Non-farm payroll data tomorrow may strengthen the US dollar index, possibly driving GBPUSD to the downside. In the meantime, I will sit on my hand and keep decking the chart until a suitable entry trigger manifests.
I'll be setting 1.21948 as my primary target, while my alternative price target will be 1.23536. These levels serve as potential objectives for future price movements within the context of this analysis.
Happy trading.
Cheers!
Let's proceed with our analysis of the GBPUSD pair.
Based on the current price action, it appears that GBPUSD has completed the initial corrective wave A within the broader correction. As a result, the subsequent wave B is currently unfolding and may be nearing its completion.
If this correction follows a simple structure, it is reasonable to expect that wave B will terminate around the price region of 1.25400-1.25650.
However, it's important to acknowledge the dynamic nature of the market, which can introduce sideways corrections, such as an extended flat pattern. In such a scenario, we might witness a significant price rally surpassing the peak of wave A at 1.26788, potentially reaching the price region of 1.27000-1.27330, before the subsequent downward move in wave C.
Before pulling the trigger to trade wave C, I will watch out for confirming price action. A positive Non-farm payroll data tomorrow may strengthen the US dollar index, possibly driving GBPUSD to the downside. In the meantime, I will sit on my hand and keep decking the chart until a suitable entry trigger manifests.
I'll be setting 1.21948 as my primary target, while my alternative price target will be 1.23536. These levels serve as potential objectives for future price movements within the context of this analysis.
Happy trading.
Cheers!
Note
ANALYSIS UPDATELast week, we managed to capture a gain of around 168 pips on the GBPUSD movement before it started to rally. This rally is part of wave (c) within a larger corrective wave (B) pattern. Based on this type of corrective pattern, there are two possible scenarios we should anticipate this week.
First, if it is an irregular flat, we anticipate a decline from the current zone. On the other hand, if it is an expanded flat, we might witness a rally that surpasses the starting point of wave (A), followed by a subsequent drop in wave (C).
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