GBPUSD Trading In A Big Correction

Gregor Horvat

GBPUSD is moving sideways after pair recovered from that 1.1500 spike low where we see a completed wave three, so current structure is an ongoing fourth wave which can see more upside as we think that market can be in an A-B-C structure. That said, wave B triangle looks completed and current rally may be wave C, which can see limited upside around 38.2.

GBPUSD Daily Chart

GBPUSD Daily Chart

Regarding the 4h chart, we see cable making a strong rise away from 1.2364, clearly in impulsive fashion which can see an extension up to 1.300-1.3140 area for wave C. That said, recent slow price activity was sub-wave 4), which found a base and current rally may be sub-wave 5) of three. That said after sub-wave 5) finds a top, a three wave contra trend decline could follow within big wave 4.

GBPUSD 4 Hour Chart

GBPUSD 4 Hour Chart

Source: www.ew-forecast.com

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