GBPAUD; why 1 last leg lower still possible?
I posted GBPAUD earlier and this is the follow up I mentioned.
Today we see a strong impulse higher, so now we need to watch for a break and consolidation above the non-horizontal trend line (blue) to buy GBPAUD.
Another approach is to wait for a 5 wave structure higher followed by a 3 wave correction.
However in case of an 'unclear' count I like to count the extensions. We see several overlaps which suggests the corrective structure. This approach is very sensitive but good to keep in mind.
9 waves is an extension of an impulse, where 7 and 11 are extensions of a correction.
I count 9 waves at the moment shown by means of the Red and Green arrows.
Since my long term target is a bit lower as well (2.00-1.98) I keep in mind that we might see another leg lower to complete the 11 waves which suggest a correction as well.
A break lower will activate a sell trade for that 11th wave.
www.timstuyts.com
facebook.com/wwwtimstuytscom/
Today we see a strong impulse higher, so now we need to watch for a break and consolidation above the non-horizontal trend line (blue) to buy GBPAUD.
Another approach is to wait for a 5 wave structure higher followed by a 3 wave correction.
However in case of an 'unclear' count I like to count the extensions. We see several overlaps which suggests the corrective structure. This approach is very sensitive but good to keep in mind.
9 waves is an extension of an impulse, where 7 and 11 are extensions of a correction.
I count 9 waves at the moment shown by means of the Red and Green arrows.
Since my long term target is a bit lower as well (2.00-1.98) I keep in mind that we might see another leg lower to complete the 11 waves which suggest a correction as well.
A break lower will activate a sell trade for that 11th wave.
www.timstuyts.com
facebook.com/wwwtimstuytscom/
