USD Index Breaks Resistance, GBPUSD Moves Towards A New

The USD had another strong day yesterday when the USD index finally went through the 99.00 resistance level. This move could put more bullish momentum in play, so the dollar can gain much more in the upcoming day.

On the 4h chart, we see that a triangle was accomplished. The rally from 96.47 appears very strong with an impulsive personality, so we expect more gains in the sessions ahead, towards 100.20, but even more after a fourth wave pullback.

USD Index 1h Elliott Wave Analysis

As the USD Index trades higher, other currencies are going down. On GBPUSD we were anticipating bearish prices from a triangle that appears complete 1.4971 as the decline has a nice impulsive sequence down from that high. As such, we expect more weakness in the days ahead. In the short-term keep an eye on the black wave 4 pullback that can stop around 1.4720-1.4750 resistance area.

GBPUSD 1h Elliott Wave Analysis

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!

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