This is a very important chart to keep in mind while trading GBPUSD. This gives us an idea of where we should expect GBPUSD to move over a long time frame. Keep in mind that we do trade shorter term time frames and would be stopped out a lot of times however if we catch that big wave right we can make up for all the stop losses that we absorb in the process.
The chart below is a monthly chart on GBPUSD. A downtrend started in 2007 and we can clearly see the wave counts. A big consolidation happened for almost 4 years and now it seems like that trendline break on the bottom of the triangle gives us a clear indication that wave 4 correction is finally complete and we can start putting money on shorts to ride wave 5 soon. Another thing to note that once it broke down, it has already retested the earlier trendline support now acting as a resistance, and now seems to be a lesser risky time to build up shorts to have the right position for the month it finally breaks through.
The chart below is a monthly chart on GBPUSD. A downtrend started in 2007 and we can clearly see the wave counts. A big consolidation happened for almost 4 years and now it seems like that trendline break on the bottom of the triangle gives us a clear indication that wave 4 correction is finally complete and we can start putting money on shorts to ride wave 5 soon. Another thing to note that once it broke down, it has already retested the earlier trendline support now acting as a resistance, and now seems to be a lesser risky time to build up shorts to have the right position for the month it finally breaks through.
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| GBPUSD Monthly Chart - Wave Count |
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