Given the further consolidation to the upside of the pound sterling against the U.S. dollar, we had to revise our previous analysis and are now seeing a different structure. The bigger picture, however, still remains downside. To put it in a few words, the structure that could have played out as a reversal moment, consolidated instead as a daily flag, confirming one last movement to the upside, before the short trade we were looking for. It is still unclear if this is an "abc" correction in a regular flat, and the pair is now double topping, or if the pair is forming an expanding flat, and the price will break the previous top at 1.366. Now it becomes clearer, however, that in the medium picture OANDA:GBPUSD is going to go for one more leg to the upside, before the bigger drop to the downside, making it a 5 wave correction to the upside on the weekly timeframe. What matters to us now, however, as we are trading step by step on the daily, is that the next expected movement with an excellent profit potential is to the downside ("C" leg of the potential ABC correction). From this moment onwards, therefore, we will be definitely looking for sell setups, also because the weekly upside correction is already completed with it's third wave and is not necessarily going to go for a 5th wave, giving us also a chance that the pair might just drop for the bigger movement. The chances for this are slim, however, and most probably the 5th leg up will happen. In any case, this won't stop us from taking the short trade now, then when the price reaches the lower weekly trend line (in pink), we will see.
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@AzeemMajeed, Dear Azeem, many thanks for your comment. As we published on our daily analysis, the "B" leg of the correction could be over now, or it could go and break the previous daily top at 1.366, giving us a higher "B" point of the correction, before the downward impulse starts. In the assumption you are trading a live account (with real money), if you are asking us this question, in reality it means that you don't have a clear idea of what your trading strategy is, so my recommendation is not to trade on a live account until you do. We are offering our wave and structure analysis publications as a complement to trader's trading strategies, as each trader has their own personal strategy based on account size, revenue expectations and potential losses that they can absorb. We are not giving trade signals for people to take randomly, especially if they don't have a backtested strategy that works with their trading style and expectations. Having said that, you can either close the position now for a slight profit, or wait until it reaches the lower trend line (in pink) putting your positions in break even: that way, if the price comes back up, your positions will be closed automatically on break even and you won't have any losses. Best Regards,