Elliott Wave Analysis: GBPUSD And GOLD

Grega Horvat

On the updated 4h chart of GBPUSD we see that prices came lower with some aggressive decline to 1.2750-1.2800 area at the end of May. Move can be impulsive, so we are considering idea of a top in place, thus more weakness may be seen to much lower levels this week, especially after a wave 2 bounce that may stop at 50.0/61.8 Fibonacci resistance area.

GBPUSD 4 Hour Chart

GBPUSD 4 Hour Chart

Gold is again trading sharply higher, now approaching levels at 1280 region. We believe this sharp and strong price activity can be a higher degree blue wave 3 in the making, with still more upside to follow. Sub-waves 1) and 2) are already completed so current rise is sub-wave 3). Be aware of temporary pullbacks that can show up during the rise. Fibonacci projection zone for wave 3) is seen around 261.8.

Gold 4 Hour Chart

Gold 4 Hour Chart

Source: www.ew-forecast.com

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