Elliott Wave Analysis: GBPUSD and S&P500

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GBPUSD

We see the USD index turning lower for a deeper correction, so for now other currencies will be strengthening. On the cable we have seen a very deep three complex correction in wave 2)/B) that appears to be finished near 1.2380, so traders should be aware of a third leg up. We see a nice bounce so far, currently with the price testing the upper channel line where a breakout can be coming which will open the door for a move up above 1.2600.

GBPUSD, 1h

S&P500

E-mini S&P500 stays in bullish mode for now; the currently making an extended blue wave five in 3 which can reach 261.8% extension target of wave 1, measured from wave 2 low. This is not far away, so traders should be aware of a limited upside and turn lower into a new corrective set-back; wave 4 as shown on the chart.

S&P500, 1H

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About Author

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, 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 www.ew-forecast.com 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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