Does anyone have any comment on this that was written today at FXCM ??? I don't know much about wave stuff and I am certainly leery of anything from FXCM... but what do you think???
Regardless, I think I am trading up tonight on GBP with profit target of 1.9720..
FXCM Today
Right now, the preferred wave count places GBPUSD in the 5th wave of a 5 wave sequence from the 11/28/2005 low (almost one year ago exactly) that started at 1.7046. The 5th wave itself began on 10/11/2006 at 1.8515. A 5th wave consists of 5 waves and the current 5th wave is in its 3rd wave. Thus, the rally from 1.8515 has two more waves left (besides the end of this 3rd wave) - a corrective 4th wave and a 5th wave rally...but how much higher? Resistance from the weekly R32 pivot is at 1.9619. Statistical studies show that weekly R2 is only exceeded about 18% of the time. This suggests limited near term upside potential. Only a drop below 1.9433 indicates that a 4th wave correction is beginning, in which case support is at the prior 4th wave extreme of 1.9304. A final 5th wave advance could then challenge the point where wave 5 (from 1.8515) equals 61.8% of waves 1 through 3 (1.7046 to 1.9025) - which is at 1.9738. Reinforcing the idea of a measured objective at 1.9738 (or about) is the fact that the 138.2% extension of 1.8515 to 1.9178 from 1.8834 is at 1.9750. Thus 1.9738 to 1.9750 could be the end of a 5 wave sequence from 1.7046.
Regardless, I think I am trading up tonight on GBP with profit target of 1.9720..
FXCM Today
Right now, the preferred wave count places GBPUSD in the 5th wave of a 5 wave sequence from the 11/28/2005 low (almost one year ago exactly) that started at 1.7046. The 5th wave itself began on 10/11/2006 at 1.8515. A 5th wave consists of 5 waves and the current 5th wave is in its 3rd wave. Thus, the rally from 1.8515 has two more waves left (besides the end of this 3rd wave) - a corrective 4th wave and a 5th wave rally...but how much higher? Resistance from the weekly R32 pivot is at 1.9619. Statistical studies show that weekly R2 is only exceeded about 18% of the time. This suggests limited near term upside potential. Only a drop below 1.9433 indicates that a 4th wave correction is beginning, in which case support is at the prior 4th wave extreme of 1.9304. A final 5th wave advance could then challenge the point where wave 5 (from 1.8515) equals 61.8% of waves 1 through 3 (1.7046 to 1.9025) - which is at 1.9738. Reinforcing the idea of a measured objective at 1.9738 (or about) is the fact that the 138.2% extension of 1.8515 to 1.9178 from 1.8834 is at 1.9750. Thus 1.9738 to 1.9750 could be the end of a 5 wave sequence from 1.7046.
