Top Trade Idea For May 29th, 2014 – GBPUSD
By Mircea Vasiu on May 29, 2014 10:23:54 GMT
Still on the gbpusd this week but while the previous week we looked at the bigger time frames and expected a running variation of a contracting triangle to form on the pair, now I want to focus on short/medium term trading and this is the hourly chart.
From the highs and to the recent lows as you can see we have a three waves structure, but this one comes in the form of a flat, with the structure of a-b-c. This structure is a 3-3-5, in the sense that the previous two waves, a and b are corrective, and the c wave is an impulsive move. Pretty standard flat, but looking at the retracement level for the b wave purple we see it is a flat with a B failure.
This kind of pattern, when independent (like seems to be the case here), should be completely retraced in less than the time taken for the c wave purple to form.
Projecting that time on the right side of the chart, we see that 1.79 should come in the first half of June and therefore I would recommend a long position by the time the 1.6750 area goes, having a stop loss in the 1.6650 area but targeting 1.6916 (highs in the previous b wave – B failure, remember?) and finally the all important psychological level.
I would say that time is already started to tick.
p style=”text-align: justify;”>About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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