Sterling is carving out a sequence of overlapping 3 wave moves which is giving the appearance of a triangle. If that is the case, we are working on the 'D' leg of the triangle.
The key element that is tipping me off to a trading opportunity is the 5 wave move higher from July 8-July 15. This is a leading wave and takes the shape of 5 waves. Therefore, there is likely going to be at least one more 5 wave move higher.
The trick is to find that area of support to buy into the next 5 wave move higher and it looks like an ending diagonal is forming (see purple waves).
In order for purple wave '3' to NOT be the shortest, purple wave '5' will need to terminate above 1.5500. Therefore, the deeper the GBPUSD can move towards 1.5500, the better risk to reward ratio opportunity to buy. Wave relationships show up in the 1.57-1.5850 range for taking profit.
One pip below 1.5500 and the ending diagonal is invalid.
Good luck!
The key element that is tipping me off to a trading opportunity is the 5 wave move higher from July 8-July 15. This is a leading wave and takes the shape of 5 waves. Therefore, there is likely going to be at least one more 5 wave move higher.
The trick is to find that area of support to buy into the next 5 wave move higher and it looks like an ending diagonal is forming (see purple waves).
In order for purple wave '3' to NOT be the shortest, purple wave '5' will need to terminate above 1.5500. Therefore, the deeper the GBPUSD can move towards 1.5500, the better risk to reward ratio opportunity to buy. Wave relationships show up in the 1.57-1.5850 range for taking profit.
One pip below 1.5500 and the ending diagonal is invalid.
Good luck!
Are you ready to learn Elliott Wave? Take our Free Elliott Wave Readiness Assessment: bit.ly/EWreadinessquiz2
www.seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress
www.seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress