Hello guys,
Just updating.
After the price broke out of the pennant, it didn't have the needed huff and puff to break over .9720 (See attached chart)
It bounced off, tested the R Line of the pennant and broke through it, currently testing the S Line of the penannt, if we break below that i see a fall to .9670 > .9654 etc.
In any other case, the price should bounce of the Pennant S, break through the R again and try and take out .9720 once more
Regards,
E. Lang
Pennant
A continuation pattern in technical analysis formed when there is a large movement in a stock, the flagpole, followed by a consolidation period with converging trendlines, the pennant, followed by a breakout movement in the same direction as the initial large movement, the second half of the flagpole.
As can be seen in the above picture, there is a large rise in the stock, followed by a converging consolidation period that resembles a pennant and a resulting continuation of the initial trend. Pennants, which are similar to flags in terms of structure, have converging trendlines during their consolidation period and they last from one to three weeks. The volume at each period of the pennant is also important. The initial move must be met with large volume while the pennant should have weakening volume, followed by a large increase in volume during the breakout.
Forex Elliott Wave Analysis - GBP/USD
65% confidence - First leg of major correction from 1.9917 has ended at 1.9483 and consolidation would be seen but upside should be capped at 1.9831, bring another selloff
Yesterday's rally after breaking indicated resistance at 1.9670 has retained our view that decline from 1.9917 has ended at 1.9483 as the a-leg and further choppy consolidation in b-leg would be seen. Above 1.9750 resistance would extend gain to 1.9790/00, however, 1.9830/40 should limit upside and bring subsequent c-leg selloff later this month.
On the bigger picture, wave v from 1.8517 is labelled as (1): 1.8859, (2): 1.8674, (i) : 1.9180, (ii): 1.8835 and (iii): 1.9849 and wave (iv) has ended at 1.9260 and wave (v)has either ended at 1.9917 or would extend marginally to 1.9950 but 2.0000 would cap upside.
On the downside, pullback should be limited to 1.9670 and as long as 1.9617 holds, bullishness remains for gain to 1.9750, then 1.9790. Break of 1.9617 would suggest the b-leg from 1.9483 is possibly developing into a triangle, then sideways trading inside 1.9537-1.9750 would be seen. Only break of 1.9537 would yield re-test of 1.9483.
Linear Mode
