The market has seen some bad economic data yesterday with lower US housing starts and building permits but stocks were higher anyway. Earlier today the UK CPI figures came out 3.1% vs 3.2% while covid cases are climbing higher so this is causing some setback on cable, which has been technically expected based on Elliott wave structure. As you know the market will slow down after five waves so the current pullback is normal and it can stabilize at former wave four, near 38.2%.
GBP/USD 1h Elliott Wave analysis
The cable is nicely recovering in the 4-hour chart as expected, but for now, we are still looking for wave (C) or wave (3). If stops here in the 1.38x area and turns sharply down, then we have to be aware of a corrective rally only, however, if rallies up to 1.39x area, then we will start tracking wave (3) of a five-wave bullish impulse.
GBP/USD 4h Elliott Wave analysis
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