GBPUSD March Rally - and the Big Decline to Come!

By: Enda Glynn | Wed, Mar 29, 2017
Print Email

GBPUSD

30 min

GBP/USD 30-Minute Chart
Larger Image

4 Hours

GBP/USD 4-Hour Chart
Larger Image

Daily

GBP/USD Daily Chart
Larger Image

My Bias: short below parity.
Wave Structure:  continuing impulsive structure to the downside in wave (5)
Long term wave count: decline in wave (5) blue, below parity
Important risk events: GBP: Net Lending to Individuals m/m. USD: FOMC Member Evans Speaks, Pending Home Sales m/m, Crude Oil Inventories.

On Thursday the 9th of March I Published my nightly Elliott wave analysis

That night I spoke about the possible turn up in the fortunes for GBPUSD.

Here is a chart and a quote from that analysis:

GBP/USD March 9 Chart
Larger Image

"The flat action today was interspersed with some spikes to the upside, which look impulsive.
So it is time to look for at least a corrective rally in cable,
which could develop into a larger move, described in the alternate wave count on the 4hr chart.

I am watching for a higher low off today's low of 1.2134 or nearby.
Tomorrows action might provide that.
The alternate wave count calls for a rally into the 1.2600 area, so this one is worth waiting for."

The alternate wave count which I spoke about called for the completion of a  large contracting triangle in wave (4) blue.

With one last rally to the upside left in wave 'E' of the triangle to complete that structure.

Here is what happened since that point, I will let the chart speak for itself!

GBP/USD After March 9 Chart
Larger Image

The market rallied 378 points into the recent high at 1.2615. Remember, the target was set at 1.2600.

So the target was met,

NOW WHAT?

Well, that contracting triangle is now complete and the market is getting ready to decline back into the longterm trend.
The declines off the recent highs labelled wave (4) blue again look impulsive,
This impulsive wave structure has big potential to the downside,
and that is what I will be tracking from now on in the nightly Elliott wave analysis.

 


To keep on top of the next big move in GBPUSD, EURUSD, USDJPY, GOLD and the DOW jones AVG, Check out Bullwaves.org and you too can see into the Elliott wave future every night!

 


 

Enda Glynn

Author: Enda Glynn

Enda Glynn
bullwaves.com

Enda Glynn

I class myself as an Elliott wave trader now, but that's not how I started out though! It took me a long time and a whole lot of pain, to finally understand what drives the price and how to use Elliott Wave correctly!

I have been trading for years and I have tested every trading system and strategy under the sun! I used to pick entry points at random based on emotion or news events or something I heard on TV! It did not take long to destroy my capital! I have blown out my account balance before, and I had to start again,

from scratch!

Believe me, I am well acquainted with failure in trading! Im sure that the above scenario is pretty familiar to you too. We have all been there. About 10 years ago I discovered The Elliott wave Principle and its method of market analysis. Since then, I have spent years learning, testing and trading, using the wave principle as the backbone of my analysis. I even went to college to study macroeconomics and econometrics. I graduated with honours degree back in 2012. The financial market knowledge and statistical edge I gained after my degree added another level to my trading. The difference in my trading approach using the wave principle, compared to before, is like night and day.

The price started to move "my way" more and more often. The wave model, offers me a lens to view market action through, which no other form of analysis can do. Elliott wave analysis, helps me answer four key questions when I am contemplating a trade:

• What direction the price is trending.
• How far is this trend likely to go.
• Where can I enter a trade with the best risk reward ratio.
• And most importantly, at what point am I definitely wrong?!

The wave principle helps me improve my trade entry, tighten up my money management and in turn increase profitability. Seeing the waves unfold before your eyes is a very rewarding experience, It is almost like peering into the future! That is how the wave principle helps my trading, and that is why the wave principle will improve your trading. It took a long time to finally master Elliott Wave Principle. After over a decade of hard work, research and learning I can call myself an expert in the field. I regularly contribute to major trading communities at FXStreet, Forex Factory, Traders Planet. I am a chief Elliott Wave analyst at HumbleTraders.

Copyright © 2016-2017 Enda Glynn

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com