Update for: 2012-05-07 - 2012-05-13
Posted on: Saturday, 05 May 2012 21:54
Short-Term Trend: uptrend
Our original 1.6300 level was reached to the point and then GBP pulled back. The pullback so far looks corrective but if the C wave of the zig-zag in wave (E) is an Ending Diagonal, then a pullback all the way to 1.6000/1.5950 can be seen. Then, I would expect one final rally twd 1.6300/1.6380 area. But we are in the final stages of wave (E), so it is better to be more deffensive and to start preparing for the next big move that should occur on the downside.
You can also take a look at my latest video analysis recorded last week that goes over the weekly and daily chart of GBP/USD and discusses a potential huge trading opportunity that is about to come.
Strategy: Taking profits on the long position from 1.5800 is now favored.
Next Update: Sun, 05/13/2012.