EW analysis of Sterling: 1.2 or even lower
On weekly chart of sterling, I am going to divide the downside movement between 1.7192 and 1.1904 into 5 impulse waves, judging by the price action and ratios required by EW rules,detailed as below:
Wave 1: 1.7192-1.4566
Wave 2: 1.4566-1.5930, closed at 1.5892, 50% ret of wave 1
Wave 3: 1.5930-1.1904, 2x length of wave 1
Wave 4: 1.1904-1.4376, 61.8% ret of wave 3, closed lower than the lowest of wave 1(1.4566)
Wave 5: since the wave 3 is over 1.618 length of wave 1, the 5th wave is either 1x or 1.618 length of wave 1
1.27, 1.2380,1.2 are important support this year.
Once the price break the 1.2 level, may further test the 1.18 (1x wave 1)
Wave 1: 1.7192-1.4566
Wave 2: 1.4566-1.5930, closed at 1.5892, 50% ret of wave 1
Wave 3: 1.5930-1.1904, 2x length of wave 1
Wave 4: 1.1904-1.4376, 61.8% ret of wave 3, closed lower than the lowest of wave 1(1.4566)
Wave 5: since the wave 3 is over 1.618 length of wave 1, the 5th wave is either 1x or 1.618 length of wave 1
1.27, 1.2380,1.2 are important support this year.
Once the price break the 1.2 level, may further test the 1.18 (1x wave 1)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.