GBPUSD In A Three-wave Recovery – Elliott wave analysis

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Hello traders,

GBPUSD is trading in a three-wave A-B-C move, up from 1.1409 level, where the latest recovery from 1.248 level can belong to a leg C of X). Leg C is an impulse, therefore a clear price structure may be seen, targeting the 1.32/1.33 level in days ahead. 

GBPUSD, daily

On the 4h chart of GBPUSD, we have a better view of the structure taking place within a higher degree wave C, up from 1.248 level. We are observing a five-wave recovery, where the price is currently ending a sub-wave 5) of three at 1.295/1.3 level, where Fib. The ratio of 261.8 and the upper channel line can provide resistance. That said, once price starts to breach below the lower channel line, that is when a pullback as wave 4 may start forming and look for support at 1.283/1.276 level.

GBPUSD, 4h

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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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