I lost about 20 pips in learning that the GBP/USD remains in its third wave, and is currently in the fifth wave position within the third. Like every other third wave, this one is not afraid to show the wave analyst who is the boss. We prematurely concluded that the 200% move wave sufficient for the 3rd wave, when all that it has done was to complete a giant 3rd of the third. Buddy, I still have my fifth wave of the third, and that tip will cost you 22 pips, thank you!
Where is the earliest target for this fifth wave of the third? If we consider that the fifth wave could be equal to the first wave, then the target is 1.5797+0.1125= 1.6922. Now, as a battle scarred veteran, I know there are no guarantees. But one mistake I am not going to make this time is to try and sell the Pound before it reaches 1.6922. Have I changed my medium-term forecast for the Pound? Not at all. I made a mistake about where the 3rd wave (actually it is the “C” wave!) finished. And it did make a fantastic move earlier, down all the way from 1.6661 to 1.5797, and was well worth the previous effort. As I keep saying, we should remain faithful to our counts until proved wrong. When we make a mistake, the cost is small. When we get it right, the rewards are handsome. Enjoy! Ramki
Related GBP (Sterling Pound) Links:
Sterling Pound in fifth wave, confounds bears
Low risk trade idea: GBP/USD Sterling pound
Elliott Wave GBP/USD Live – Elliott Wave GBP/USD today 4 June 2009
