Gbp/Usd ; Corrective Wave, Gold; End of Wave B?
Gbp/Usd ; Corrective Wave
$ Hour Chart Trend: Short. Main price points: 1.5982, 16743 Looking for: Wave A)/I)
We saw a bounce back up from 1.5982 lows as expected in the recent session, followed by a current top around the 50% Fibonacci retracement area. We would expect this current wave B)/II) leg to be more complex than actually is, before wave C)/III) falls lower. The market may still react with a possible corrective structure in the coming session, especially if another push up follows, while the wave A)/I) holds (blue arrow). In this case the market would make a three wave pattern which would suggest a break through 1.5982 later, if the 1.6743 area olds.
Sometimes the market makes very sharp corrections that are recognizable only on a very small time frame, so wave B)/II) top may also already be in place. In this case, traders may see a break through the .5982 area even earlier that expected.
Gold; End of Wave B?
Daily Chart trend: Mixed. Main price points: 864.54, and 989. Looking for: Wave B lows
Gold fell lower in the last few days, which means that wave B is not completed yet. The current prices are testing the 61.8% Fibonacci support area, which is the most common Fibonacci ratio of wave B pull-backs, compared to wave A. So, traders may still be looking for long positions, as prices are trading well above the 864.54 support area. If this support gets broken at anytime then we will have to re-work the wave count. The stochastic read looks bullish after the recent cross in the over-sold area.
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