GBP/USD Price Analysis: Third Elliott Wave might pull back soon


  • GBP/USD trades 0.35% lower on Monday despite USD weakness against the EUR.
  • The price waves have moved to a new wave low but there could be a retracement soon.

GBP/USD 4-hour chart

GBP/USD has been in a downward trend since 10th June making some significant lower highs and lower lows. The price has now moved toward the 76.4% Fibonacci retracement which matched up very nicely with the 138.2% Fibonacci extension. 

There is also a bullish divergence on the Relative Strength Index indicator. If you look closely you can see the indicator waves have made a higher low and the price made a lower low wave pattern. 

The most important resistance in the Elliott Wave pattern is the wave 1-2 low of 1.2454. If the wave 1-2 low is broken to the upside this would invalidate the pattern and the bulls might regain control of the market.

Interestingly, close to that level the 50% Fibonacci retracement and 50% red Fibonacci singular wave measurement confluence. This means it could be an important zone. This move has moved pretty low pretty fast. There are now some indications that the sell-off could be losing momentum but if the low of 1.2251 breaks then its game on for the bears.

GBP/USD Elliott Wave Analysis

Additional levels

GBP/USD

Overview
Today last price 1.2286
Today Daily Change -0.0050
Today Daily Change % -0.41
Today daily open 1.2336
 
Trends
Daily SMA20 1.2545
Daily SMA50 1.2416
Daily SMA100 1.2484
Daily SMA200 1.2691
 
Levels
Previous Daily High 1.2437
Previous Daily Low 1.2314
Previous Weekly High 1.2543
Previous Weekly Low 1.2314
Previous Monthly High 1.2601
Previous Monthly Low 1.2076
Daily Fibonacci 38.2% 1.2361
Daily Fibonacci 61.8% 1.239
Daily Pivot Point S1 1.2288
Daily Pivot Point S2 1.224
Daily Pivot Point S3 1.2166
Daily Pivot Point R1 1.241
Daily Pivot Point R2 1.2485
Daily Pivot Point R3 1.2533

 

 

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