Firstly the British Pound Sterling tracking ETF fund FXB inception date was 6/21/2006. The bearish cycle lower from the November 2007 highs in FXB is the focus of this analysis where it begins on the monthly chart. The British Pound Sterling has been the currency of the Bank of England since 1694. Considering that date was back before there was a US Dollar to compare with and data readily available suggests price was at 2.6440 in 1972 assume the trend is down & should continue. Spot price in the GBPUSD foreign exchange was 1.0520 in 1995. Price was at 2.1161 in 2007 where it peaked and turned lower. This is where we will shift the focus to the FXB highs at 211.44 in November 2007.
Secondly the bearish cycle from the November 2007 into the January 2009 lows was clearly an Elliott Wave impulse in 5 waves. From there that lasted into the July 2014 highs appeared to be a typical double three structure with an exception compared to the spot price of foreign exchange where it made a new high above the August 2009 highs in a flat wave y of (II) whereas the FXB did not. I accept this as being similar to the structures a triangle wave "Y" of any degree will not surpass the peak or low of the previous wave "W" of same degree. Also in a similar fashion in running flats the last wave "C" will not take the high or low of the initial wave "A".
Either way it is irrelevant as to what the structure was as the momentum indicators suggested that July 2014 high corrected the cycle from the November 2007 highs. The analysis continues below the monthly chart.
Thirdly The turn lower from the July 2014 highs appears to be an impulse lower into the October 2016 lows. That did not hardly reach equal legs of the initial wave (I) on the monthly chart. Thus I conclude that the impulse lower into the October 2016 lows must be of one smaller degree. This is as shown on the both the monthly and weekly chart. The bounce from the October 2016 lows was an expanded flat with a diagonal ((C)) wave into the April 2018 wave II highs.
From there it is apparent there are 3 impulse cycles. The momentum indicators suggest the wave (3) ended and it is correcting the cycle from the February 2019 highs. The wave (3) is shorter than the wave (1). This is fine to label that way as long as the (5) does not exceed the wave (3) length. It is expected to be relatively short as shown. The analysis continues and concludes below the weekly chart.
FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by www.Elliottwave-forecast.com and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by www.Elliottwave-forecast.com is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.