Elliott Wave view: GBP/USD zigzag correction in progress [Video]
|Short term view in GBPUSD suggests the rally to 1.3143 ended wave 1. Pullback in wave 2 is currently in progress as a zigzag Elliott Wave structure. Down from wave 1, wave (i) ended at 1.305 and rally in wave (ii) at 1.3126. Pair then declined in wave (iii) towards 1.2867 and rally in wave (iv) ended at 1.2965. Pair made the last leg lower wave (v) towards 1.2839 to end wave (v). This completed wave ((a)). Rally in wave ((b)) unfolded as an expanded flat structure. Up from wave ((a)), wave (a) ended at 1.2904, wave (b) ended at 1.2797, and wave (c) of ((b)) ended at 1.2997. Pair then extends lower in wave ((c)).
GBP/USD 60 minutes Elliott Wave chart
It has broken below the previous expanded flat wave (b) low at 1.2797, which suggests the next leg lower has started. Down from wave ((b)), expect wave (i) to complete soon. Pair should then rally in wave (ii) to correct wave (i) before it resumes lower again as far as it stays below 1.2997. Potential target for wave 2 lower is 100% – 161.8% Fibonacci extension of wave ((a)) which comes at 1.256 – 1.269. Near term, as far as pivot at 1.2997 high stays intact, expect rally to fail in 3, 7, or 11 swing for further downside.
GBP/USD Elliott Wave video
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.