£/$-GBP/USD – Market Shift – Bearish Cycle Wave V

£/$-GBP/USD delivered piece by piece our previously posted/projected Primary Wave Y (red) and rose 950 pips towards our targeted 1.3200 Levels.
We believe that that the Bullish Swings for £/$-GBP/USD are about to complete and that a new Bearish Cycle is right around the corner.
LEWA is targeting a Medium-Long Term SELL on £/$-GBP/USD which has potential to show a 1500 pips gain.
Simply put, Lionheart Elliott Wave Analysis is preparing a Big Sell on £/$-GBP/USD and feels honored to share this High Probability Trade with its Subscribers.

£/$-GBP/USD is a complicated Forex Pair when it comes to Structures and Elliott Wave Counts but LEWA likes the challenges.
We managed to deliver some pretty impressive Trades for our Members:

“The best is yet to come.”

What does a Market Shift mean and how come we see that?

The type of Technical Analysis that we are using allows us to see up-coming High Probability scenarios. In other words, the Charts are pointing out to the end of Cycle Wave IV (black), the end of the Major Consolidation (Oct 2016 until now) and the start of the Bearish Cycle V (black).
We would like you, our valued Trader/User/Investor to see what we see, therefore, we will be summarizing the content into clearer points, so that you will be able to see the bigger picture but also how it all comes together into one complete ‘’trading puzzle’’.

£/$-GBP/USD – Complete Cycle:

£/$-GBP/USD – Monthly Chart:

Weekly Chart is showing us the Bigger Picture and that we are actually in a WXY (green) Grand Super-Cycle, with a few more Swings needed until even this Structure will complete.
Currently we are located in the last leg of Grand Super-Cycle Wave Y (green), more exactly within Cycle Wave IV (black) of Super-Cycle Wave (C) (purple).

£/$-GBP/USD – Daily Chart – Super-Cycle (C):

Cycle Wave I (black) represents the first Bearish Impulse, showing an Extension in its Primary 3 (turquoise).
Cycle Wave II (black) retraced 50% of Cycle Wave I (black), showing a Zig-Zag Structure in its Primary (ABC) (red).
Cycle Wave III (black) presents a Major Extension within its Primary 5 Waves Structure, ending its Cycle at the 150% Fibonacci Extensions of Cycle Waves I & II (black).
Cycle Wave IV (black) is showing a Complex Corrective Structure within its Primary WXY (red) Waves, reaching towards the Vibration Area of the previous Consolidation within Primary 4 (blue) of Cycle Wave III (black), as if Price Action is being drawn into a ‘’whirlpool’’ and towards those levels before it could continue the next moves.
Elliott Wave Theory states that often a Wave 4 would end in the price territory of another Wave 4 from a previous degree.

Interactive Chart – Daily:

£/$-GBP/USD – 4H Chart – Cycle Wave IV (black):

After Brexit and Flash Crash Cycle Wave III (black) ended its Bearish Primary Waves, leaving room for Cycle Wave IV (black) to unfold its Complex Corrective WXY Primary (red) Structure.
Primary W (red) unfolded under a Flat, with a 3 Swings Sequence in its Intermediate (ABC) (light blue) waves.
Primary X (red) unfolded with an Extended Retracement, under a Double Flat Structure, forming the Head within the Inverted Head and Shoulders Pattern.
Primary Y (red) unfolded as a Zig-Zag Structure, with 5 Swings Sequence in Intermediate (A) (light blue), with 3 Swings Sequence in Intermediate (B) (light blue) and with an Extension in the 5 Minor Waves (blue) Sequence of Intermediate (C) (light blue).

Interactive Chart – 4H:

Cycle Wave IV (black) – Fibonacci Measurements & Projections:

Primary Y (red) is expected to end with a Bearish Divergence and Ending Diagonal Combo, at or around the 1.3200-1.3300 Levels as a Range.
Primary Y (red) is expected to end its Bullish run at or around the 150-161.8% Fibonacci Extensions of primary W & X (red).
Minor 5 (blue) is expected to end the Ending Diagonal and Primary Y (red) at or around the 161.8-200% Range of Fibonacci Extensions from Minors 1 & 2 (blue).
Minor 5 (blue) is expected to complete with a Bearish Divergence at the 100% Fibonacci Extensions of Minors 3 & 4 (blue).

£/$-GBP/USD – 2H Chart – Minor 5 (blue):

Minor 5 (blue) is unfolding as an Ending Diagonal, with all Waves having 3 Swings sequence, under the Minute degree.
Minute i (green) unfolded its Minuette (abc) (black) with a Leading Diagonal in Minuette (a) (black) and an Extended Minuette (c) (black).
Minute ii (green) unfolded its Corrective Structure with a Zig-Zag, within a Descending Channel.
Minute iii (green) unfolded its Minuette (abc) (black) Structure under a Zig-Zag (common for Ending Diagonals), with 5 Waves Sequence in Minuette (a) (black) and with 3 Waves Sequence in Minuette (b) (black) showing a Contracting Triangle in Sub-Minuette b (red).

Minuette (c) (black) is clearly having problems pushing upwards, with Bearish Pressure being felt, hence the reason for its ‘’choppy’’ and complex moves, violating some Elliott Wave rules.
These rules violations are acceptable when within an Ending Diagonal.

Minor 5 (blue) – Projection & Speculation:

It is very common for Ending Diagonals to ‘’give their last breaths” at the Upper Trend-Lines with Bearish Divergence confirmation, therefore, one would be interested to follow the signs.

Interactive Chart – 2H:

£/$-GBP/USD – Short-Medium & Long Term – SELL Positions:

Aggressive:
Entry Level – 1.3200
SL – 1.3400

Moderate:
Entry Level – 1.3300
SL – 1.3500

Conservative:
Entry Level – 1.3400
SL – 1.3600

Targets:

Short-Term – 1.2750
Medium-Term – 1.2400 & 1.2000
Long-Term – 1.1600

Safety Measures:

When in the green, moving SL to beak-even or in profit.
If Conservative, one would wait for a possible Breach of Lower Trend-Line and a Flag Formation.
Looking for a final Swing on the Up-Side and a Bearish Divergence confirmation.

Many pips ahead!

*Should you have any questions in regards to this SELL set-up please book your appointment.