GBPUSD bouncing back

Hi Traders,

GBPUSD now at 1.5215.

After the top at 1.5605 - check the top at "2" in the daily chart below -  the Pound  resumed the main downtrend to point 1 (in black). It's now performing a temporary pullback.


DAILY CHART - click the chart to enlarge

SITUATION

After bottoming at 1.5157 the Pound should bounce back to 1.5298, possibly the area 1.5323-1.5328 and theoretically to the area 1.5360-1.5390.

This should be staged with a two-step-pattern upward, meaning 3 waves only. Then the major downtrend would resume.

SHORT TERM TARGETS:

(up) likely: 1.5298
(up) possibly the area 1.5323-1.5328
(up) theoretically the area 1.5360-1.5390

(down) likely: area 1.5073-1.5159
(down): likely: 1.4984

LONG TERM TARGETS (down):

(down) likely: 1.4777
(down) possible: 1.4552
(down) maybe: 1.4345

ENTRY POINT

Long Position: not worth it but if you want to get in, wait for area 1.5187

Short Position. Entry only:

• after reaching the target above mentioned
• the last wave of the two-step-pattern must be performed in 5 waves up
• wait for reversal candlestick at the top
• wait for a confirmation from the "wave oscillator" on your 4-hour chart (see below) before entering your short position.

For info on how to use the "wave oscillator" please check http://www.fxtutors.com.au/p/the-wave-oscillator.html

4-HOUR CHART - click the chart to enlarge

 4-HOUR CHART with the wave oscillator - click the chart to enlarge

 1-HOUR CHART - click the chart to enlarge

 1-HOUR CHART with the wave oscillator - click the chart to enlarge