GBP/USD: Is the Pound ready for a bearish trend?
In the long run, GBPUSD seems to be forming a global triple zigzag w-x-y-x-z, in which the final actionary wave z develops.
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Wave z most likely takes the form of a primary triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ, in which we see the development of the primary wave Ⓩ. It can take the form of a double zigzag pattern (W)-(X)-(Y). The formation of the intervening wave (X) has recently ended.
There is a high probability that the last sub-wave (Y) will take the form of a double zigzag W-X-Y.
The first actionary leg W can end in the form of a minute zigzag to a minimum of 1.092.
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In the second scenario, the wave z could be fully completed. And now the bulls can move the price up within the new trend.
It is assumed that the formation of a primary triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ occurs, where the first four parts are already formed.
In the last section of the chart, the final actionary wave Ⓩ is formed, the structure of which is similar to a double zigzag (W)-(X)-(Y). Most likely, it will be at 76.4% of wave Ⓨ, and will end near 1.300.
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.
