It finally seems as blue wave ii have come to an end. Short term I'm looking for resistance at 131.55 to protect the upside for a break below 131.07, which will confirm a continuation lower towards strong support at 130.40. However if my count is correct support at 130.40 would likely seem like butter and prices would cut through it like a warm knife. Long term I'm looking for re-test of strong support at 124.96 in a flat correction. We might fall even more, but for now let's concentrate on getting down to 124.96. The risk is a break above 131.55 which would make the decline from 131.98 look like a correction a call for a new test of this resistance.
We have seen the expected rally higher and have both broken the former high at 171.13 and broken above the base channel resistance-line, we should see wave iii accelerate towards the upside for a test of my first target at 1.7326. However we could easily see this rally extend further and if this is the case, we should be looking for 1.7886 as the next major target. Support is now found at 1.7028 and again at 1.6987, but we should expect corrections to be sub-normal in wave iii.
Hi EWS Great posts last week GBP looking like at the end of correction could be ready for major push down from hear what do you think.
ReplyDeleteBest Regads jt
Hi JT,
ReplyDeleteThank you very much!
I think you are right. However, We could see GBP/USD move a little higher towards 1.5384 before the top is finally inplace, but I would not bet on that outcome.
A break below 1.5304 will be the indication, that a top is in place, while a break below 1.5283 confirms the top and the next impulsive decline to below 1.5102.
Kind regards
EWS