Elliott Wave Analysis on GBPUSD and DXY

Elliott Wave Analysis on GBPUSD and USD Index

GBPUSD

GBPUSD is turning nicely down as expected, now already beneath the channel line which is an important evidence for a trend change as we talked about in our recent updates. Notice that a decline from 1.4514 is also done in impulsive fashion which is another indication that bears are becoming stronger than bulls. That said, we may see a continuation down to around 1.3839 area in the days ahead, but maybe after a pullback into wave two.

GBPUSD, 4H

USD Index

USD index is turning higher, now trading above 95.97, where an overlap makes an important step towards bullish view as bearish impulse is now invalidated. That said, we see first signs of a low in place especially as the leg up from 94.60 is also quite sharp so it can be the first wave within a new recovery that is headed up to around 98.59 area, towards the termination point of a red wave 4). If we are correct, then wave 2 pullback can be interesting to track for more dollar strength after a completion of a set-back

USD Index, 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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