GBPUSD Making a Three Wave Rally (Elliott Wave Analysis)

This is a follow up on the article: GBPUSD Could Recover Back Above 1.5000 GBPUSD is in a sharp uptrend in the past two days, which was expected from a technical point of view after five waves down in red wave 5) of (3) followed by a broken trend-line.

Well, the current rally has an impulsive structure which means that the leg is part of a larger recovery which will probably prove corrective as we are tracking a blue wave (4) pull-back.

Anyhow, even if a recovery will be corrective, we still need three waves up, labeled as A-B-C zig-zag formation, because we know that corrections are always structured with a minimum three legs.

Therefore, be aware of more upside after wave B pull-back, while market is trading above 1.4830 low. If we are correct, then pair could retrace even up to 1.5300.

Sentiment table

Current Trend/Sentiment	Directional Bias	Strategy
Up		03/15 Traders could be looking for longs within a three wave rise while 1.5830 holds.

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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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