The GBPUSD Elliott Wave Analysis on the daily chart concentrates on a trending market with an impulsive mode, indicating a strong upward momentum. The wave structure under review is Orange Wave 3, which suggests the market is in the midst of a significant upward trend as part of a larger impulsive wave sequence.

Currently, the market is positioned in Navy Blue Wave 3. This wave positioning indicates the market's continued upward progression within the ongoing impulsive wave, contributing to the overall trend. The analysis indicates that the direction for the next higher degrees aligns with the continuation of Orange Wave 3, which has already begun and is propelling the market further upward.

The analysis observes that Orange Wave 2 of 3 seems to have completed, marking the end of the corrective phase within the current wave structure. This completion allows the market to transition into Orange Wave 3, an impulsive wave expected to maintain the upward momentum. This transition is crucial as it signifies a shift from consolidation to a more assertive upward movement in the GBPUSD pair.

The wave cancel invalid level is set at 1.26658, serving as a critical threshold for this analysis. If the market were to fall below this level, it would invalidate the current wave structure, indicating that the expected progression from Orange Wave 2 to Orange Wave 3 is not happening as predicted. Such a scenario would necessitate a reevaluation of the wave count and the overall market outlook.

In summary, the GBPUSD Elliott Wave Analysis on the daily chart underscores a strong upward trend within an impulsive wave structure. The market is currently in Navy Blue Wave 3, with Orange Wave 2 completed and Orange Wave 3 now in progress. The wave cancellation invalid level at 1.26658 is crucial for confirming the validity of this analysis.

GBP/USD day chart

GBP/USD four-hour chart

Function: Trend

Mode: Impulsive

Structure: Orange Wave 3

Position: Navy Blue Wave 3

Direction next higher degrees: Orange Wave 3 (started)

Details: Orange Wave 2 of 3 appears completed, now Orange Wave 3 is in progress.

Wave cancel invalid level: 1.26658

The GBPUSD Elliott Wave Analysis on the 4-hour chart concentrates on a trending market characterized by an impulsive mode. This analysis indicates that the market is currently moving in a strong upward direction. The specific wave structure under observation is Orange Wave 3, which is part of a larger impulsive pattern.

At this stage, the market is positioned in Navy Blue Wave 3. This positioning suggests that the market is experiencing a significant rise as part of the broader trend driven by the impulsive wave structure. The analysis underscores that the direction for the next higher degrees is aligned with the continuation of Orange Wave 3, which has already begun and is expected to propel the market higher.

A crucial detail in this analysis is the completion of Orange Wave 2 of 3. This marks the end of the corrective phase within the current wave structure. With Orange Wave 2 completed, the market has now entered Orange Wave 3, an impulsive wave expected to continue driving the market upward in line with the overall trend.

The wave cancel invalid level is set at 1.26658. This level is essential for validating the current wave count and analysis. If the GBPUSD were to fall below this level, it would invalidate the existing wave structure, indicating that the anticipated progression from Orange Wave 2 to Orange Wave 3 is not unfolding as expected. Such a scenario would necessitate a reevaluation of the wave count and the overall market direction.

In summary, the GBPUSD Elliott Wave Analysis on the 4-hour chart highlights a strong upward trend within the impulsive wave structure, with the market currently in Navy Blue Wave 3. The completion of Orange Wave 2 has led to the start of Orange Wave 3, which is driving the market higher. The wave cancellation invalid level at 1.26658 is critical for maintaining the validity of this analysis.

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.

AUD/USD remains above 0.7200 after China's trade data

AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie. However, mixed China trade balance data keep the pair restricted.

USD/JPY stabilizes at around 154.00 as markets assess BoJ outlook

USD/JPY fluctuates at around 154.00 in the American session on Tuesday after rebounding from the six-month low it touched below 153.00 earlier in the day. Nevertheless, the upside attempts resemble technical corrections for now as Japan's upbeat wage growth data and Q2 GDP revision cement bets on a BoJ rate hike next week and continue to support the Japanese Yen.

Gold holds around $4,400, but for how long?

Gold (XAU/USD) remains on the back foot during American trading hours on Tuesday, even as the US Dollar (USD) remains on the defensive. Rising Oil prices and expectations of a Federal Reserve (Fed) rate hike weigh on the precious metal. At the time of writing, XAU/USD trades around $4,400 after reaching an intraday high near $4,443.

Bitcoin remains highly sensitive to macro signals amid changing derivatives narrative

Bitcoin’s (BTC) sensitivity to US economic data has become increasingly evident this year. As the market approaches several important data dumps this week, BTC traders are keenly aware of the significance just like their counterparts in TradFi. And just like the stock market, crypto traders are focused squarely on the US central bank's interest rate policy.

Europe in focus: September 2026

Six major net contributors demanded substantial cuts to the European Commission’s proposed 2028–2034 EU budget. Germany, Denmark, the Netherlands, Austria, Finland and Sweden issued a joint position on 27 August calling for the nearly €2 trillion proposal to be reduced by several hundred billion euros and rejecting additional common EU borrowing.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.