FOREX Prediction, 2021–01–15 Friday
GBPUSD:
Let’s take a look at the D1 chart (some Fibonacci’s are hidden to prevent clutter),
The UP trend (started in 2020–03–20) is getting closer to end. Is it gonna correspond to the inauguration of Biden (2021–01–20)?
Anyway, Generalized Wave theory is a pure technical analysis, so we don’t care about the news.
Still, the big question is “when and how will Wave 7 in D1 end to complete the UP trend?”
In Generalized Wave Theory, a wave consists of at most SEVEN sub-waves.
Let’s dissect Wave 7 (D1) in the H4 chart (some Fibonacci’s are hidden to prevent clutter),
Currently, the 6th sub-wave of D1 Wave 7 is forming. The wave-count above is confirmed by the following Fibonacci ratios:
- Sub-Wave 1 = Sub-Wave 2 * 2.618 (Time-wise / Horizontally)
- (Sub-Wave 1 + 2) * 1.618 = Sub-Wave 3 (Time-wise)
- (Sub-Wave 1 + 2) * 0.618 = Sub-Wave 4 (Time-wise)
- Sub-Wave 1 = Sub-Wave 5 * 2.618 (Time-wise)
If the wave-count above is true, Sub-Wave 7 will form soon and must manifest a Fibonacci ratio with the previous sub-waves (Sub-Wave 1, 3, or 5).
An alternate (less likely) wave-count is that Sub-Wave 5 can still be forming (need more data to validate).
Either way, D1 Wave 7 will end soon.
Conclusion:
- Prepare SELLING and close BUY positions. The market will PLUMMET DOWN SOON (probably in 1 or 2 weeks).
- Start SELLING if the market breaks down the Support 1.3453.
- If you prefer safe SELL entries, WAIT until the Support 1.3134 is broken DOWN, then SELL.
