Hello Guys,
Basically we are still holding a Long Bias.
The price dip on H4 is just a correction of 9480 to 9747.
I’ve drawn a possible Elliot Wave scheme and we ill be lucky to catch in on the third wave if i am right with the waves drawn.
The correction could have ended already at .9625 or it could go further down to as far as .9600 before attempting another rise. Once again if i’ve drawn my waves right this should be a big rally.
Not much to say for now.
Regards,
E. Lang
GBPUSD is taking a nice dip after a rise towards 1.9740 level. The dip is expected to continue towards 1.9607 level where the retracement is expected to be completed and GBPUSD is then expected to resume its log-term upward trend.
Most traders will look to buy GBPUSD today on dips towards 1.9600 level for targets above 1.9725 which could then be extended to 1.9850 level. Break of 1.9600 today will take GBPUSD towards 1.9512 level. RSI is around 51 in daily charts and don’t seemed to play much part in GBPUSD’s movement today.
GBP/USD
Cable’s retreat from 1.9745 continues today and reaches as low as 1.9625 so far, but is still kept above 1.9618 support. As discussed before, a low made at 1.9480 after being supported by rising trend line support (1.8517 to 1.8834) and 55 days EMA. Hence, further rally is still in favor as long as 1.9618 support holds. Above 1.9745 resistance will bring retest of 1.9913 high. However, below 1.9618 will argue that the rebound from 1.9480 has completed after being limited by 61.8% projection of 1.9913 to 1.9480 at 1.9748 and should put focus back to the mentioned trend line support (now at 1.9517).
In the bigger picture, with mentioned trend line support remains intact, the rise from 1.8517 is still in progress and further rally could still be seen that brings cable above 1.9913 high. However, 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 could complete at or below this level.
Meanwhile, we already have bearish divergence conditions in weekly RSI, daily MACD and RSI. Sustained break of the trend line support will confirm that whole rise from 1.8517 has completed and bring decline towards 1.9237/61 cluster support (23.6% retracement of 1.7047 to 1.9913 at 1.9237). 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) first.