In Red i will highlight targets that have been violated and in Blue those that haven't.
BULLS -
In Order of Violation:
* .9668
* .9696
* .9734
* .9913
* 2.000
BEARS -
In Order of Violation:
* .9625 - This is a good bearish signal, however it looks best to consider shorts only under .9598
* .9598
* .9574
* .9480
* .9455
* .9315
* .9260
Regards,
E. Lang
GBP/USD
Cable rebounded strongly after the fall from 1.9913 was supported by mentioned rising trend line support (1.8517 to 1.8834, now at 1.9490) and reached 1.9480 only. At this point, intraday bias remains on the upside as long as cable stays above 1.9597 minor support and further rally might still follow. Focus remains on 1.9695 cluster resistance (50% retracement of 1.9913 to 1.9480 at 1.9697) and mentioned trend line support.
As long as 1.9695 resistance holds, the fall from 1.9913 is still in favor to extend further. And sustained break of the trend line support will confirm that whole rise from 1.8517 has completed at 1.9913 and deeper decline is expected to follow towards 1.9237/61 cluster support (23.6% retracement of 1.7047 to 1.9913 at 1.9237). However, decisive break of 1.9695 resistance will indicate the fall from 1.9913 has completed after failing to break through mentioned trend line support. In such case further really should be seen to retest 1.9913 high.
In the bigger picture, we already have bearish divergence conditions in weekly RSI, daily MACD and RSI. Decisive break of 1.9237/61 cluster support will add much weight to the case that whole medium term up trend from 1.7047 has already completed earlier than we thought and much deeper decline should be seen towards next cluster support at 1.8834 (38.2% retracement of 1.7047 to 1.9913 at 1.8818).
And in case of further rise, close attention will be paid to sign of loss of upside momentum and reversal pattern formation as cable approaches key 2.0106 cluster resistance (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067) as the whole medium term
up trend from 1.7047 should complete at or below this level.
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 1.9772, bring another selloff.
Despite yesterday's selloff to 1.9483, lack of downside follow through and subsequent reversal indicate the first leg of major correction from 1.9917 top has indeed ended at 1.9483 and consolidation in minor wave b would be seen for few days. Above 1.9697 resistance would add credence to this view and extend gain to 1.9734 and possibly 1.9750 but reckon 1.9772/75 would limit upside.
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 1.9577 (50% of 1.9483-1.9671) and 1.9548/55 would hold and bring another strong rebound later.
you are serious
Linear Mode
