GBP/USD: Bearish correction (B) is half completed
It is assumed that the GBPUSD pair can build a corrective cycle wave IV.
Perhaps this correction takes the form of a triple zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. At the time of writing, the final primary wave Ⓩ is under development.
There is a high probability that the actionary wave Ⓩ will have the form of a standard zigzag (A)-(B)-(C), as shown in the chart.
We see that the first wave (A) has already been built. After it, the market went down in correction (B). Wave (B) may take the form of a double zigzag and end near 1.200. At that level, it will be at 76.4% Fibonacci of impulse (A).
However, it is necessary to consider an alternative scenario in which the intermediate correction (B) is already fully completed. Thus, the market can move in an upward direction within the final intermediate wave (C).
The end of wave (C) is expected near 1.318. At the specified level, impulse waves (A) and (C) will be equal to each other.
We will continue to monitor the currency pair in the future.
Author
Jing Ren
Orbex
Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.
