Elliott Wave buying opportunity on Cable, from key support

Gregor Horvat Wavetraders

What’s the most important level for GBP/USD right now?

For me it’s clearly the December 17–18 area, the zone created by lower CPI and the BoE rate decision. That move built a real base in the market, and price keeps reacting to it, which already tells me this level matters.

From an Elliott wave view, the picture is also very clean. We had a completed five wave advance into the top, and since then price is in a regressive phase that fits well as a corrective A-B-C. The projection for wave C points straight into the 1.3300 area, exactly where that December support sits.

This is basic wave trading. When structure and levels meet in the same zone, that’s when I pay attention. Around 1.3300 I’m watching for a hold and a bounce, because that would fit perfectly with the idea of a completed correction.

Clear structure, clear level, clear risk. That’s the kind of setup worth following.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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