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Despite some weakness seen in the pound for more than a week back from 1.6060 level,  the pair was unable to break beneath the support channel line that is connected from the January low.

In fact, this line caused a strong buying into a new high seen in the past week, which we now believe its a wave C leg; a third leg of a zig-zag recovery after a runing triangle in B wave.

Guest post by Gregor Horvat

As such, we are now focused on more strenght for the next few days if not weeks, towards 1.6200 or even higher, before wave E) from 2012 low is complete.

GBP USD Elliott Wava Analysis April 23 27 2012
GBP/USD Elliott Wava Analysis - Click image to enlarge

Pair will reverse into a bearish stage only when 1.5800 gives way!

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