GBPUSD in the extension within a downtrend channel
GBPUSD is finishing the wave B extension after the impulsive 5 waves down in the downtrend channel. We are within a possible extended ABC wave for the extension lower to 1.000. For the upside reversal from here, we need to see a break above the 1.3000.
Get the powerful trading signals and analysis with the combination of Price Action and Elliott Wave!
On a daily chart, price action in the GBPUSD is within a rising wedge flag indicates an end corrective B extension wave. Short trade entries are favored here with the stop loss above 1.2680 as it is clearly now strong downside support with targets 1.2400 and 1.2000 in extension medium-term. Our trading system is indicating a potential of 150-500 pips of profit. Look for the short trade entries invalidation to come only on a clear daily close above 1.300.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
