💵💷Why I think this is the end of the growth.
💵All due to the upward correction on the dollar that I think will take place in the coming weeks.
💵After I perfectly predicted the downward wave on the dollar. Link to post below:
💵Now I think it will be time for an upward correction in this trend:
💵💷Which will have an impact on the GBP/USD pair.
Looking at the fundamentals:
💷 UK economic growth also slows is currently 2.4%.
💷We will find out about unemployment today (15 November). We are currently at 3.5%. The market is not entirely convinced whether we will maintain this level or increase. tradingeconomics.com/united-kingdom/unemployment-rate
💷Inflation continues to rise we have 10.1% so far but the market expects a further rise, which may prompt the monetary policy council to remain mostly hawkish.
💷 Rates were raised to 3% on 3 November and so far there is no sign of us slowing down in the near future.
💷I would also like to add that a few weeks ago the Central Bank of England announced unlimited asset purchases which may influence the strengthening of the pound.
💷Which has been evident in recent weeks on the chart, but I think the main fiddle here will be played by the dollar which will surprise with strength and a return of bullish sentiment. With this, the GBP/USD price is likely to go down to the levels marked on the chart
💵💷 Moving to the chart in turn I will describe everything I have applied.
💵💷Beginning with the upward channel in which the price has been oscillating for the last few weeks.
💵💷I would also like to point out the impulse structure, each upward impulse was preceded by a rather deep correction. The price has repeatedly struggled to make new highs. This shows the weakness of the pound compared to the dollar.
💵💷 I also measured the entire upward wave using the fibo to spot price points of interest.
💵💷I also measured the biggest downward correction using the fibo to find where the price could stop.
💵💷I also found a harmonic formation on the chart using the fibo measurement of the last downward correction
💵💷I measured the range of the largest correction in the upward momentum to determine the range of the 1:1 correction
💵💷Based on the cluster I got from combining the range of the largest correction in the impulse and the 0.382 level, I determined a strong support zone.
💵💷Based on the cluster of the outer levels of 1.272 and 1.618 and the harmonic formation, I determined a strong resistance zone where we are currently.
💵💷💷The scenario I am playing out is the price going down to the level of the cluster of the biggest 1:1 correction and the level of 0.382 of the whole upward wave.
💵💷*Please do not suggest the path I have drawn with the lines this is only a hypothetical scenario for further increases.
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