This dip in GBPUSD brought the fx pair down to the top of a 14-year broken resistance trendline in an anticipated wave ((iv)). Based on this move alone, it would be extremely bullish pointing to significantly higher pricing.
It is possible the fourth wave is over and GBPUSD will accelerate higher in a 5th wave. 1.44 are minimum and immediate targets with much higher levels underway. The larger 25-year pattern suggests levels up to 2.00.
A derivation of the wave count above is that wave ((iv)) will be a triangle pattern. This suggests prices slop around sideways for a few more weeks.
Under both scenarios, GBPUSD is bullish will holding above 1.3483.
Considering the size of the 25-year pattern at play, this is a good one to follow.
Good luck!
It is possible the fourth wave is over and GBPUSD will accelerate higher in a 5th wave. 1.44 are minimum and immediate targets with much higher levels underway. The larger 25-year pattern suggests levels up to 2.00.
A derivation of the wave count above is that wave ((iv)) will be a triangle pattern. This suggests prices slop around sideways for a few more weeks.
Under both scenarios, GBPUSD is bullish will holding above 1.3483.
Considering the size of the 25-year pattern at play, this is a good one to follow.
Good luck!
Note
After seeing more of the price action develop, I suspect we are looking at a developing triangle pattern where this current sell off is wave (c) of the triangle. This implies the drop below 1.38 is a buying opportunity as future waves of the triangle likely hold above this level.
The next rally would be wave (d) of the triangle then one more small dip in wave (e) to finish the triangle pattern.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Are you ready to learn Elliott Wave? Take our Free Elliott Wave Readiness Assessment: bit.ly/EWreadinessquiz2
seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.