GBPUSD Elliottwave Analysis: Another leg lower expected

Elliott Wave Forecast Team ElliottWave-Forecast.com

GBPUSD is showing a 5 swing bearish sequence from 12/6 peak (1.277) which favors more downside. The decline from 12/6 peak is unfolding as a double three where wave (W) ended at 1.2198 and wave (X) ended at 1.2432. GBPUSD has since broken below wave (W) at 1.2198 which suggests that the next leg Wave (Y) has already started to the downside. Internal of wave (Y) is unfolding as a double three where wave W ended at 1.2104 and wave X bounce is in progress to correct cycle from 1/5 high (1.2432) before pair resumes lower again towards 1.172 - 1.185 area. We don't like buying the bounce and expect sellers to appear to push the pair to another low once wave X bounce is complete in 3, 7, or 11 swing. The first 3 swing inflection area of ((w))-((x))-((y)) is 1.223 - 1.225 for potential area where sellers can appear to push the pair to the downside.

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Elliott Wave Forecast Team

ElliottWave-Forecast.com

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