This is my first post of 2016! This is a long terms prediction purely based on technical analysis. We have 4 different strategies all predicting that the GBPUSD will rally. We have a counter-trend trading opportunity where I expect this pair to come down into the 1618 extension where we will be looking for an opportunity to go long, and if you are a resistant and support trader you will be looking left where the previous daily support structure lies and we have also have a harmonic move which will terminate near the 1618 extension as well as the daily support level. As for me, I will be focussing on the Bat pattern that has already completed, however, i still think this market will go down a little further because my RSI is not yet oversold so i will wait before i enter into a long position.
Watch my video to see an in depth analysis on this pair as well as the EURUSD.
Yeah that's the way it looks, we do have a similar scenario on the GBPJPY as well. 3 different bullish advanced patterns all terminating near structure with different entry price of course.
WaveAlchemy
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Do you have a chart to share for GY?
WaveAlchemy
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GJ rather
JoMarshall
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JoMarshall
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And the RSI is already oversold, so i will be expecting a rally from here any time soon
WaveAlchemy
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I take it that purple is a gartley. I dont think point B validates a gartley. Take it as 0.78 and extend D to 169.1 for a butterfly
JoMarshall
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Yeah the purple is a gartley and people do trade it differently and in my case i need B to only touch the 618 and nothing else.....that's what i back-tested but there's no wrong or right way to trade it really as long you've backtested it and produces result. I don't trade the butterfly.
WaveAlchemy
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Yeah that's true. Well anyway, for your information the cypher and butterfly terminate in and around the same level. doesnt hurt to know haha. But yeah I will take the bat long when the time comes. But i dont think it will create new highs so will take profits at previous high. Just nice medium term momentum and then back down again towards the Cypher and Butterfly D.