Although we generally speak about EUR/USD, but I suppose it will not be a mistake if we take a look at a monthly Cable chart and try to make a forecast, based on EW for further moves. I’ve marked waves for you and important areas, so how do you intend to act here? Chart #5 | GBP/USD monthly with EW Pipruit: Ok, let’s see. On previous upside move there was 3d wave that extended. Cool… So now we see that down trending move is developing. The market has turned to corrective 3-wave pattern and it takes the Zigzag form as ABC. So it’s logical to search a possibility to enter short somewhere at the end of wave 4. But how to estimate where it will be… Commander in Pips: All that you’ve said is correct. Pay attention to the markings that I’ve made for you. Just look carefully – remember all important stuff is in nuances that are not seen by most participants. Remember what we’ve discussed earlier. Pipruit: All right. Since this is the 4th wave, applying the same rules, we can say, that a move down should reestablish from one of the Fib resistances. Market currently has hit 0.50. But you have occasionally marked for me 0.618, curious… Commander in Pips: Any thoughts? Pipruit: Well, just one. I suppose that there is an Agreement of Fib extension of AB-CD move, i.e. of corrective wave. Due the moment that CD move (current move up) is flatter than the AB move – it’s hardly likely that the market will go farther than the 100% extension target, especially taking into consideration that there will be an Agreement. So, it looks like that establishing a short from 0.618 area, after the moment, when market will hit 100% target seems logical. I’ve drawn it on the following chart: Chart #6 | GBP/USD monthly Agreement by Pipruit Commander in Pips: Excellent! Please, continue. Pipruit: Well, Also applying the rule, that 4th wave could not ever overlap with 1st one – we should place stop somewhere above 0.88 Fib resistance, that is slightly higher than the low of the 1st wave. That’s why you’ve marked it with a blue circle. Then we should await the development of a 5th wave to the downside. Commander in Pips: That’s right, and can you tell something about the potential depth of 5th wave, is truncation possible there? Pipruit: I’m sorry, Commander, but here is where my skills are finished.