Elliott Wave Analysis on GBPUSD and USD Index

GBPUSD

Cable has fallen even lower in the last few sessions which makes a decline in five waves down from 1.4410 (black wave 4) without any overlaps so it looks like we have an impulsive decline underway. That said, we need five waves from 1.4667 within wave 5-circled so more weakness will be expected after any three wave bounce up into red wave 4) that may find resistance at 1.4160-1.4057 area.

GBPUSD, 4H

USD Index

After a sharp move down from 99.87 the USD index is now bullish as the decline from the start of the month to 95.26 has unfolded in five waves. We know that after every five waves the market will move into the opposite direction with minimum three waves back into the area of the former wave four or even higher. In our case the termination point of wave four comes in at 97.50 which has already been reached so be aware of more gains after wave 2/B pullback.

USD Index, 4H

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!

View all posts by Gregor Horvat