- September 4, 2011
- Posted by: Ramki Ramakrishnan
- Category: GBP
The Pound has finished a five wave move from 1.4235 to 1.6720. Hence, we will be looking for a correction that is bigger than either of the two corrections seen during the 5 wave upmove. All corrections tend to be in sets of three waves (or their combinations)
As wave A came down in 3 waves, it was reasonable to expect the B wave to go back to the start of Wave A (as a flat correction). I went overboard and suggested we might even look for a new high! That is not happening. For nearly 3 weeks, the Pound has been confined to a 400-point range. There is a growing feeling that we might get a sudden dip, just as demonstrated in Fig 12a in the Book.
But let us see waht happens around 1.6100 to determine if we are indeed already in the C wave. Don’t worry about the missed opportunities! We only want to get involved in low-risk trades.