FOREX Prediction, 2021–01–18 Monday

3 min readJan 19, 2021

GBPUSD:

Let’s take a look at the D1 chart (some Fibonacci’s are hidden to prevent clutter),

As we have been waiting, the final wave (Wave 7) of the UP trend (started in 2020–03–20) is getting closer to the end. Soon the DOWN trend will begin with SELL opportunities.

Still, the big question is “when and how Wave 7 will end? or has it already ended?”.

In Generalized Wave Theory, a wave consists of at most SEVEN sub-waves.

Wave 7 (D1) has TWO likely wave-counts.

Let’s dissect Wave 7 (D1) in the H4 chart (some Fibonacci’s are hidden to prevent clutter) to predict it’s ending,

Option A:

Currently, the final 7th sub-wave of Wave 7 (D1) 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 end soon and must manifest a vertical Fibonacci ratio with the previous sub-waves (Sub-Wave 1, 3, or 5).

In Generalized Wave Theory, FIVE or SEVEN waves of the same degree must manifest at least one vertical (price-wise) Fibonacci.

Option B:

Currently, the final 7th sub-wave of Wave 7 (D1) is forming. The wave-count above is confirmed by the following Fibonacci ratios:

Sub-Wave 4 * 2.618 = Sub-Wave 3 (Time-wise / Horizontally)
(Sub-Wave 1 + 2) * 1.618 = Sub-Wave 3 (Time-wise)
Sub-Wave 1 = Sub-Wave 5 * 1.618 (Price-wise / Vertically)

If this wave-count is true, Sub-Wave 7 doesn’t have to manifest a vertical Fibonacci because Sub-Wave 1 and 5 already did.

Option A or B?:

I tried to find out which option is true by analyzing each Sub-Wave (H4) in the H1 chart. Unfortunately, I hit the dead end because when a wave consists of THREE sub-waves, the wave doesn’t have to manifest any Fibonacci.

Thus, I have to accept both the options are possible. It is best to WAIT.

Conclusion:

Either Option A or B, the market will PLUMMET DOWN SOON. Thus, prepare to SELL.
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.
There is a small chance that Wave 7 (D1) is already ended. Anyway, the market must break DOWN the Support 1.3134.