GBP/USD selling the rallies at the blue box area
|Another instrument that we have been trading lately is GBPUSD forex pair. In this technical blog we’re going to take a quick look at the Elliott Wave charts of GBPUSD and explain the trading strategy. As our members know, GBPUSD is bearish against the 1.2670 pivot. Recently the pair has given us good trading opportunity. In the further text we are going to explain the Elliott Wave Forecast and the trading strategy.
GBP/USD H4 Elliott Wave analysis 07.26.2022
GBP/USD is showing higher high sequences from the lows. Recovery looks incomplete at the moment. We expect more upside within wave 4 recovery toward blue box area : 1.2343-1.2168. Strategy is selling the pair at the marked zone. Invalidation for the trade would be break above 1.618 fibs extension: 1.2343. As the main trend is bearish we expect sellers to appear at the blue box for 3 waves pull back at least. Once pull back reaches 50 Fibs against the ((b)) black low, we will make short position risk free ( put SL at BE) and take partial profits.
As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a reaction.
GBP/USD H4 Elliott Wave analysis 08.06.2022
Eventually , GBPUSD made extension higher toward our selling zone :1.2343-1.2168. The pair found sellers right at the blue box and made reaction from there that has reached 50 fibs against the ((b)) black low. As a result, members who took short trades mad positions risk free . ( Put SL at BE) and took partial profits. At this stage we see wave 4 red completed at 1.2293 high. We would like to see break of previous low : 3 red 07/14 to confirm wave 5 red is in progress.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.