Elliott Wave Analysis: Has GBPUSD Really Bottomed or Just

GBPUSD fell sharply to the downside, a few weeks back, which we see as the final wave V that touched the lower trendline of a wedged pattern, known also as a diagonal triangle. If we are correct and the price really did post wave C) lows, then the recent upward action may be the start of a new bullish rally. But if the price breaks beneath the current wave V lows, then wave V of C) may still be in the making with lower prices to follow.

GBPUSD, Daily

Regarding the 4h chart, GBPUSD bounced at the end of last week with a nice and strong move, which looks like an impulsive reaction that took us above 1.2674. As of the current price action we can say that red wave 3) is now completed, and a possible corrective wave 4) could be in motion towards the 38.2 or 50.0 Fibonacci ratio with sub-wave A in final stages. If the price trades as expected, then we could be in for more gains in the weeks ahead.

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!

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