The GBPUSD Elliott Wave Analysis on the daily chart examines the British Pound to U.S. Dollar currency pair using Elliott Wave Theory. This analysis focuses on identifying and interpreting market movements within a counter trend. The mode of the analysis is corrective, indicating that the current wave pattern represents a correction within the larger trend.

The specific wave structure under observation is Orange Wave 2, signifying that the market is in the second wave of an overall corrective pattern. Within this structure, the position is Navy Blue Wave 3, indicating that the currency pair is in the third wave of a smaller degree within the Orange Wave 2.

The analysis anticipates the next higher degree direction to be Orange Wave 3. After the completion of Orange Wave 2, a new impulsive phase, Orange Wave 3, is expected to commence, likely leading to a resumption of the broader trend.

Details provided in the analysis highlight that Orange Wave 1 appears to be completed, and the market is currently progressing through Orange Wave 2. This suggests that the market is undergoing a corrective phase after the completion of the first wave. The current focus is on the development and completion of Orange Wave 2 before transitioning into Orange Wave 3.

A critical aspect of this analysis is the wave cancellation invalid level, set at 1.26113. This level serves as a threshold to validate or invalidate the current wave analysis. If the market price surpasses this level, it would invalidate the current wave analysis, requiring a reassessment of the wave structure. This invalidation level is essential for maintaining the accuracy of the wave analysis and ensuring effective risk management.

In summary, the GBPUSD daily chart analysis identifies the market within a corrective counter trend, focusing on the development of Orange Wave 2 within Navy Blue Wave 3. The analysis suggests that Orange Wave 1 is completed, and the market is now in Orange Wave 2. The next anticipated phase is Orange Wave 3. The wave cancellation invalid level at 1.26113 is crucial for validating the current wave count and maintaining risk management.

GBP/USD Elliott Wave analysis: Day chart

GBP/USD Elliott Wave analysis: Four-hour chart

Function: Counter Trend.

Mode: Corrective.

Structure: Orange Wave 2.

Position: Navy Blue Wave 3.

Direction next higher degrees: Orange Wave 3.

Details: Orange Wave 1 completed, Orange Wave 2 in play.

Wave cancel invalid level: 1.26113.

The GBPUSD Elliott Wave Analysis on the 4-hour chart examines the British Pound to U.S. Dollar currency pair using Elliott Wave Theory. This analysis aims to identify and interpret market movements within a counter trend. The mode of the analysis is corrective, indicating that the current wave pattern is a correction within the broader trend.

The specific wave structure under observation is Orange Wave 2. This indicates that the market is currently in the second wave of an overall corrective pattern. Within this structure, the position is Navy Blue Wave 3, suggesting that the currency pair is in the third wave of a smaller degree within the Orange Wave 2.

The analysis anticipates the next higher degree direction to be Orange Wave 3. After the completion of Orange Wave 2, a new impulsive phase, Orange Wave 3, is expected to commence. This would likely lead to a resumption of the broader trend.

A critical component of this analysis is the wave cancel invalid level, set at 1.26113. This level serves as a threshold to validate or invalidate the current wave count. If the market price surpasses this level, it would invalidate the current wave analysis, requiring a reassessment of the wave structure. This invalidation level is essential for maintaining the accuracy of the wave analysis and ensuring effective risk management.

In summary, the GBPUSD 4-hour chart analysis identifies the market within a corrective counter trend, focusing on the development of Orange Wave 2 within Navy Blue Wave 3. The analysis suggests that Orange Wave 1 is completed, and the market is now in Orange Wave 2. The next anticipated phase is Orange Wave 3. The wave cancellation invalid level at 1.26113 is crucial for validating the current wave count and maintaining risk management.

GBP/USD Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

GBP/USD turns negative; slips back to 1.3530

GBP/USD comes under pressure and weakens toward the 1.3530 zone on Tuesday. Cable thus leaves behind two daily upticks in a row and retreats further from Monday’s multi-week tops past 1.3570 following humble gains in the Greenback and disheartening UK jobs data.

EUR/USD back to square one near 1.1580

EUR/USD trims its earlier gains and retests the 1.1580 region in the latter part of the NA session on Tuesday. Indeed, the pair falls into the generalised consolidative theme prevailing in the FX space amid marginal gains in the US Dollar, steady uncertainty in the geopolitical landscape and diminishing bets for further Fed rate hikes.

Gold remains offered around $4,350

Gold accelerates its daily correction and revisits the $4,350 zone per troy ounce on Tuesday. The precious metal sets aside two daily advances in a row and follows the absence of direction in the US Dollar, declining US Treasury yields across the curve and continuous uncertainty in the Middle East crisis.

Crypto Today: Bitcoin, Ethereum, XRP falter amid escalating US-Iran tensions

Cryptocurrency prices are broadly correcting on Tuesday, with Bitcoin edging lower toward $64,000. Ethereum shows weakness amid ongoing narrow-range consolidation, while Ripple trades below $1.00, weighed down by falling technical indicators.

Fiscal concerns and doubts on Fed independence send US yields to long-term highs

US Treasury yields keep rising across the curve this week, with the yield for the 30-year Treasury bond reaching its highest level since 2007, during the global financial crisis, at 5.33% so far on Monday. A mix of concerns about the ballooning US fiscal deficit and growing doubts about the Federal Reserve’s Independence are increasing pressure on US Government Bonds.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.