GBPJPY
GBPCHF
GBPAUD
Commentary – It appears that wave 3 within the 5 wave decline from 230.33 is complete or nearly so. Therefore, expectations are for larger a corrective setback in wave 4 to end near 217.31 (former 4th wave extreme). However, an extension lower is certainly a possibility so trading from the long side is risky. Very short term, a drop below 209.42 could complete an expanded flat. Potential support would be at the 61.8% of 107.01-211.99 at 208.91.
Strategy – Flat
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Commentary – We wrote last week that “a measured objective is at 2.1265 (261.8% ext. of 2.4963-2.3758/2.4419). The next bearish opportunity comes on a bounce in wave 4 (likely to end above 2.2000).” The low was at 1.1232 and the rally from there is most likely the beginning of wave 4 that should carry back to 2.2137 (about). Near term, expect a deep retrace of the rally from 2.1234 since this 4th wave will probably be a flat or triangle. Potential support is from 2.1522-2.1454.
Strategy – Flat
Commentary – The decline from 2.3887 would equal the 2.5640-2.2184 decline in percentage terms at 2.0669, which is the initial objective. We are showing this version of the daily chart to illustrate how major the support is that the pair has broken…and how much farther down the decline can extend. A bounce the last few days does have us a bit worried but we are maintaining a bearish bias as long as price is below 2.2739 Want to find more opportunities like this? Then visit the Elliot wave forum.
Strategy – Bearish, against 2.2739, target 2.0700
