Search ForexCrunch

A decline from 2008 peak into 2009 low was in five waves, which in Elliott Wave theory indicates a direction of a larger trend.

This is called an impulse wave, and once this leg is complete you will see a reversal in price, against the trend, normally into a slow, choppy and overlapping price action which is personality of a correction.

Well, this is exactly what we are seeing on cable since 2009.

GBP USD Cable Elliott Wave 2012 Forecast

Guest post by Gregor Horvat

As such, we are very confident that pair is trapped in a corrective pattern, triangle which in fact may have already ended at 1.61. In such case, a sharp weakness will follow in 2012, with prices headed below 1.35!

If you want updates and more technical analysis, then please visit our website here, or follow us on twiter