Article By RoboForex.com
In our previous review, “1,100 pips up, smooth sailing! Wave analysis of GBP/LPY for 06.11.2014”, we discussed one of the possible scenario how the price may finish an ascending wave [v] of 5.
Possibly, the pair has reached its predicted target, completed an ascending impulse [v] of 5 of (1), and started forming first waves of a large descending correction (2).
Right now, the price is forming head & shoulders, a reversal pattern (inside a green rectangle). However, the trend reversal hasn’t been confirmed so far and the price may yet change the ending of an ascending wave [v] of 5.
If the assumption about an ascending impulse (1) is correct, then later the market may start forming a large descending correction (2), maybe in the form of zigzag.
However, at the same time one should remember that any possible scenario is subjective and the market may move in a completely different direction.
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Article By RoboForex.com
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.