Gbpusd Intraday Market Update

I will be building on the analysis I did on 22nd of this month. You can scroll down the blog or click here. 

 

I noted an ending diagonal as part of the zigzag pattern that I thought could end wave 4 of the larger wave in order to be part of the potential large move downside.

 

I put a sell order at the break of the diagonal and soon market started moving up and down showing the diagonal might not have finished forming. A diagonal is usually followed by sharp moves

 

I exited the trade manually with -70pips in order to analyse more critically.

 

At the end of trade on 25th February, I saw that ending diagonal was still intact with double zigzags in between its legs. 

 

 

The fibonacci extension of wave A from B has pierced the 161.8% and price is now heading to 200% fibo extension level at 1.5560 and its neighborhood. 

 

This level could mark the last wave to complete the diagonal before a crash down.      A crash down could happen if the 200% level holds and price breaks below the support trendline of the diagonal.

 

Zooming down to the 15minute chart, something very interesting also surfaced.

 

  

    The supposed last wave of the expected diagonal formation, vividly seen on 15 minute chart is also forming a diagonal. 

 

This would be a massive move. That will be dual time diagonal formation.

If the 200% holds at the turning point, i would trade aggressively at the break of the 15 minute ending diagonal. 

 

A conservative way of trading is by waiting for the 1 hour diagonal to be broken downside by price. Proper stop order should be done with good money management.

I will see you in the next update.

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