Search ForexCrunch

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

gbpusd d

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

GBPUSD 4