GBPUSD - Big Move Setting Up - Elliott Wave AnalysisGBPUSD is currently unfolding a 5-wave impulsive move according to Elliott Wave Theory.
At the moment, we are in Wave 4, which typically corrects against the larger trend.
Key Points:
Wave 2 was a simple correction, so based on alternation, Wave 4 is expected to be more complex (likely an ABC structure).
Wave 4 often retraces to the 38.2% Fibonacci level — in this case, aligning perfectly with a long-term ascending trendline, providing additional confluence for a potential buy zone.
Trade Plan:
- Monitor the ABC correction for completion near the 38.2% retracement.
- Look for bullish confirmation (trendline break, bullish structure shifts, BOS, etc.).
- Entries will be considered after clear signs of bullish pressure.
- Stoploss: Below the lows formed during the Wave 4 correction.
Targets:
First Target: 1.3400 (450 pips)
Second Target: 1.3750 (800 pips)
Summary:
Patience is key during the Wave 4 correction. Once the setup confirms, this could offer a strong risk-reward opportunity within the overall bullish impulsive structure.
See our past GBPUSD setups below:
Swing 1:
Swing 2:
Swing 3:
