Elliott Wave Analysis: Bears pushing lower on cable; Final

GBPUSD is in recovery mode since March this year, when the pair accomplished an extended five wave drop down in wave III. We know that after a very powerful leg, the market will make a corrective retracement which will either be simple or complex. In our case we think it’s something more complex in wave IV but it might be completed after the recent strong leg down to 1.4200 area, which can be subwave three of V headed to a new lows this year.

GBPUSD, Daily

On the lower time frame, GBPUSD has turned sharply lower last week witha accelerating price action towards 1.4150 level so we have to consider the idea of more weakness ahead as the decline from 1.4700 is very strong, so it can be wave three underway to around 1.4000 psychological level, within context of a bearish continuation as shown on a daily chart where the price is pointing down into wave five.

GBPUSD, 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