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GBPUSD Is Looking Bearish Against 1.6260-Elliott Wave Forecast

GBPUSD is very slow and choppy above the 1.5900 level so we think that a move from the latest low is corrective one, and therefore we think that the recovery is temporary.

In fact we have labeled a decline from 1.6260 with five waves down which is evidence of a bearish price action, marked as wave (a) or (i). In both cases we expect a third leg lower once the corrective wave (b) or (ii) will complete a retracement.

Ideally this will occur somewhere between the 38.2-61.8% retracement area compared to the previous decline. In that region we also have a parallel trend line connected from the 1.6161 swing that could also react as a resistance level.

With that said traders should be aware of a bearish waves in the next few days. This view remains valid as long as price trades beneath 1.6260 high.

GBPUSD technical Elliott Wave Analysis October 16 2013 forex trading cable

Gregor Horvat

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!