GBP/USD bullish price swing in Wave 4?

The GBP/USD has made a 500 pip bullish price swing. But despite the large move up, price action is technically still in a downtrend. Let’s review:

  1. The GBP/USD broke below the round level of 1.20 but the bulls regained control quickly and unexpectedly. 

  2. The bullish price swing however seems to consist of an internal ABC pattern (yellow) within the wave A (green).

  3. Our Elliott Wave analysis therefore favors a bearish ABC (yellow) within the wave B (green).

  4. The wave B (green) could go to the 78.6%, 88.6% or even previous bottom (100%).

  5. A larger bullish ABC (green) correction could complete a wave 4 (pink). This remains valid as long as price action stays below the bottom of wave 1.

  6. A break above the 1.2475-1.25 resistance zone would indicate a potential trend reversal or retracement.

  7. A new downtrend could aim for targets at 1.1850, 1.1750, 1.1650, and 1.15.

GBPUSD

BTC/USD struggles to find bullish legs?

Bitcoin (BTC/USD) has reached the -27.2% Fibonacci target around the round psychological level of $20,000. Let’s review what is next for the main crypto currency:

  1. The BTC/USD is trying to build a bullish retracement but the price action remains hesitant to pull away from the 20k area.

  2. It seems though that price action will be completing a bullish ABC (green) within a wave 4 (pink) choppy correction. 

  3. The most logical target for the wave C (green) of wave (pink) is the 38.2% Fibonacci retracement level but sometimes price action can retrace deeper.

  4. A bullish break above the trend line (orange) and 78.6% Fibonacci level makes the current bearish Elliott Wave analysis unlikely and invalidate.

  5. A bullish correction that is choppy and lengthy is typical for a wave 4 and would confirm this expected wave pattern.

  6. The bearish target for the wave 5 (pink) of wave 5 (gray) of wave A (purple) is around $17,500. A larger wave B pattern could emerge of a larger ABC once the wave A is completed.

BTCUSD

US30 large whipsaw but bearish remain in control

The US30 made a strong bullish bounce at the 23.6% Fibonacci retracement level:

  1. The US30 bullish bounce could indicate a potential larger bullish correction. 

  2. Price action, however, remains in a downtrend and the bullish bounce is probably a retracement.

  3. The bearish correction has probably completed a wave A or W (pink) of a larger ABC or WXY (pink) correction.

  4. If price action places a higher low, then a bullish ABC (green) within wave B or X (pink) could see price action move towards the resistance trend lines (orange).

  5. A bearish bounce and downtrend continuation is expected to emerge within a large and complex wave 4 (blue).

US30

Elite CurrenSea Training Program(s) should not be treated as a recommendation or a suggestion to buy or sell any security or the suitability of any investment strategy for Student. The purchase, sale, or advice regarding any security, other financial instrument or system can only be performed by a licensed Industry representative; such as, but not limited to a Broker/Dealer, Introducing Broker, FCM and/or Registered Investment Advisor. Neither Elite CurrenSea nor its representatives are licensed to make such advisements. Electronic active trading (trading) may put your capital at risk, hence all trading decisions are made at your own risk. Furthermore, trading may also involve a high volume & frequency of trading activity. Each trade generates a commission and the total daily commission on such a high volume of trading can be considerable. Trading accounts should be considered speculative in nature with the objective being to generate short-term profits. This activity may result in the loss of more than 100% of an investment, which is the sole responsibility of the client. Any trader should realise the operation of a margin account under various market conditions and review his or her investment objectives, financial resources and risk tolerances to determine whether margin trading is appropriate for them. The increased leverage which margin provides may heighten risk substantially, including the risk of loss in excess of 100% of an investment.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD continues to decline toward 1.0250 during the American trading hours on Friday. After the data published by the UOM showed that the long-run inflation outlook rose to 3% in August from 2.9% in July, the dollar gathered strength against its rivals, weighing on the pair.

EUR/USD News

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD is trading deep in negative territory near 1.2100 during the American session on Friday. With the UoM's Consumer Sentiment Survey pointing to a modest increase in the long-run inflation outlook, the US Dollar Index extended its rally, reflecting a broad dollar strength.

GBP/USD News

Gold clings to modest gains above $1,790

Gold clings to modest gains above $1,790

Gold stays relatively resilient on Friday and trades modestly higher on the day above $1,790. Although the greenback continues to outperform its rivals on the latest US data, falling US Treasury bond yields help XAU/USD hold in positive territory.

Gold News

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shytoshi Kusama, the project leader of Shiba Inu announced the launch of Shiba Eternity for Vietnamese players. The game is available for testing and the team has asked users for their review. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures