GBP/USD looks like we are starting a wave 3 of 4. In addition it looks like we have a wedge forming which is a sequence of waves 1 and 2 which could make the move explosive.
Wave 2 stopped in between 50% and 61.8% of wave 1.
Price has keep capped my the weekly ichimoku cloud base
What to look for.
look for a 3 wave move up to form wave (2). When this has formed enter the trade on the break of wave b with a stop above wave c. I will post confirmation when this happens.
The top of wave 4 coincided with a 60 touch RSI
Price is also bound by the monthly ichimoku cloud
If price moves above wave 2 in circle (1.5661) the count is invalid.
A break of the Neckline would also help to reinforce the view that we have a head and shoulders pattern.
My first target id 1.618 of wave 1 which comes in at 1.4693
Breaks of 1.5330 and 1.5170 will add extra confidence to this view.
Wave 2 stopped in between 50% and 61.8% of wave 1.
Price has keep capped my the weekly ichimoku cloud base
What to look for.
look for a 3 wave move up to form wave (2). When this has formed enter the trade on the break of wave b with a stop above wave c. I will post confirmation when this happens.
The top of wave 4 coincided with a 60 touch RSI
Price is also bound by the monthly ichimoku cloud
If price moves above wave 2 in circle (1.5661) the count is invalid.
A break of the Neckline would also help to reinforce the view that we have a head and shoulders pattern.
My first target id 1.618 of wave 1 which comes in at 1.4693
Breaks of 1.5330 and 1.5170 will add extra confidence to this view.