GBPUSD: Bullish Triangle

FX:GBPUSD   British Pound / U.S. Dollar
GBPUSD has formed a bullish triangular pattern.

Usually this wave structure forms in an impulsive sequence as wave 4 . It consists of 5 sub waves as wave-a , wave-b , wave-c, wave-d and a final setback wave-e . Each of these waves consists of three wave internal structure. Each of the waves should not break their extreme points. The final confirmation to enter the position comes when the price gets close above the level of wave-d. The minimum target of the pattern is just a poke above the level of wave-b and just above the level of wave-3 of the impulsive count. There is also a guideline to predict the target of this pattern which is known as triangular thrust. The triangular thrust is the measurement of the distance from the level of wave-a to the level of wave-b . This measured length should be kept to the breakout level of wave-d to get the target of this pattern.

Trading strategy:

Buy on cmp and add on dips , maintain the sl of 1.35700 & look for the tgt of 1.3800/ 1.3900 /1.4000
Trade closed: stop reached

Manish Bhardwaj
Analyst & Co-Founder