The advance from September 2019 low can be seen as a five-wave Elliot Wave impulse structure, labeled 1-2-3-4-5. According to the theory, a three-wave correction follows every impulse pattern.
In GBPUSD's case, the decline from wave 1 high in December 2019 has been unfolding as a three-wave A-B-C zigzag pattern. Wave A and B of the correction are sharp moves while wave C seems to be unfolding as an ending diagonal pattern.
If this count is correct, GBPUSD is about to complete a bullish 5-3 wave cycle. The theory states that once a correction is over, the larger trend resumes in the direction of the impulse.
Here, once wave “C” is over, a bullish reversal can be expected. The anticipated rally has the potential to move GBPUSD price above wave 5 high around 1.3518 in the short term.
What's your thought on GBPUSD? Let me know in the comment.
Thanks.
In GBPUSD's case, the decline from wave 1 high in December 2019 has been unfolding as a three-wave A-B-C zigzag pattern. Wave A and B of the correction are sharp moves while wave C seems to be unfolding as an ending diagonal pattern.
If this count is correct, GBPUSD is about to complete a bullish 5-3 wave cycle. The theory states that once a correction is over, the larger trend resumes in the direction of the impulse.
Here, once wave “C” is over, a bullish reversal can be expected. The anticipated rally has the potential to move GBPUSD price above wave 5 high around 1.3518 in the short term.
What's your thought on GBPUSD? Let me know in the comment.
Thanks.