Saturday, March 17, 2012

GBPUSD Expanding triangle

Here is the daily chart of the GBPUSD pair.

Although there are a few possible scenarios in GBPUSD, I think that the expanding triangle would be the best possibility for wave B. If this is indeed wave B, then a triangle would be the best possibility due to the current upward move in the pair. So I would suspect to have a minor pullback or just open slightly lower and then have a couple of more upside days before topping around 1.6050 area. Then we should have a very sharp sell off for the second part of the week that will lead us all the way down to 1.5550 area. At that point we will have a very clear confirmation that this was indeed wave B triangle and we will have a very good buying opportunity at 1.55 area. The minimum target for wave C would be 1.62. A good strategy for this week would be to wait for the rise above 1.60, and then wait for a daily close bellow 1.60. After we have a daily close bellow 1.60 the whole triangle scenario would be confirmed, and we can sell with take profit at 1.5550.

Good Luck:)

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