The Cable established a bullish move throughout last week. What should we expect next in the coming days and couple of weeks? Has price hit an intraday resistance? The following gives viable clues based on 20 March GBPUSD daily Elliott wave analysis.
20 March, AtoZForex – In the last post-FOMC GBPUSD Elliott wave analysis, we projected further rallies before a dip possibilities. A trend will correct at a point no matter how strong it is. There is a strong likelihood that the bullish trend will resume after a long term correction completed at 1.2105. A strong rally could be seen above 1.2785 in the coming weeks as the world expects BREXIT official negotiations and implementation. The chart below was used in the last update.
Buying the dip at 1.22 would be ideal for buyers. Rally will probably resume toward 1.26 and above before the end of the month.
Our expectation was if rally isn’t long enough, it would be good to wait for the correction and buy the pullback for a good risk/reward. The rally got stronger and gave what could be a bearish opportunity for intraday traders. This will also give a large R/R. After an impulse wave of any degree, a 3-wave correction follows and we may see that in the coming couple of days. The chart below shows our updated intraday wave count on the Cable.
20 March GBPUSD daily Elliott wave analysis: intraday idea
The impulse wave rally completes just below a long falling trendline. A breakout below wave ii-14 connecting trendline could give a good bearish idea for intraday sellers and warn the buyers to take some profits. The pattern also ended with a diagonal mouth. A diagonal breakout if often sharp and directional. A sideway move after the breakout would mean a ‘fake’ diagonal. If it doesn’t behave like a diagonal, it’s probably not it. There is a possibility that the rally will continue especially if price breaks above 1.2438. Price must be contained below 1.2438 and break below the wave ii-14 connecting line before considering this as a bearish opportunity.
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