Elliott wave analysis of GBP/USD, given by an experienced trader. You will also find there useful recommendations for the whole month.
On the monthly graphic GBP has passed 1st, 2nd and 3rd down waves from maximum and now is in the 4th correcting wave. Having passed waves A-B trend is moving up in the wave “C” with the target 50% of Fibonacci correction level of wave 3, which is practically 1.68. The trendline is shown as green line (is also displayed on smaller timeframes).
Now let’s have a look at the wave C on smaller timeframes.
At D1 graph the price is in the 3rd upward part of correction wave 4, mentioned before. But the 5th wave of C might reach the level of 61.8% according to Fibonacci retracement, which is about 1.76. The green trendline is at the same time line of support.
Recommendations for traders with long-term strategies: keep long and take profit at the level of 1.68, because the trend should go down fast after reaching that target.
At H1 graph we see, that the 3rd upward wave is finished and it gonna begin a 4th correction wave, with the correction level of 38%, which is about 1.628. The green inclined line in the lower part of the graph is the support line from the monthly graphic.
Recommendation for traders with intraday strategies: in case the trend reaches 1.6335, go short and take profit at 1.628.
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