GBPUSD has traded following our previous forecast and now it is preparing for another bullish run towards new highs. (Refer to our General Forecast).
GBPUSD 1H Chart – View 1 – April 21, 2016
If we observe only the green count, the extension rules tell us that the next target should be near 1.4630-60 in order to complete wave 3 of C of 4 (see General Forecast). Even though it is a major bullish run towards that level, when we focus only on the 3rd wave of C we might see an earlier completion (see chart below)
GBPUSD 1H Chart – View 2 – April 21, 2016
If we make the extension of red wave I with red wave II we have 162% extension target for wave III completed yesterday. The channel targets the end of wave C around 1.4550-80.
However this extends, it is important for GBPUSD not to test 1.4250 and below that price we have our adjusted stop-loss. We expect the lower-bound of the channel to hold and a new impulsive run to begin today targeting the upper-bound of the channel.
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