GBPUSD: Three Wave Rally From July Low Suggests A

GBPUSD: Three Wave Rally From July Low Suggests A

GBPUSD is moving higher, but the rally from July’s low is still in three legs with wave C) now near completion as the price is approaching the upper trend line of a corrective channel as well as an equality level compared to wave A).

We can also count five waves up from 1.5100 wave B) low, so sooner or later reversal will follow, ideally from 1.5700.

gbpusd_aug_16_2013_4h_-2 Elliott Wave Technical Analysis bearish reversal

A three wave A-B-C move in Elliott Wave Theory is called a zig-zag that generally moves counter to the larger trend. It is one of the most common corrective Elliott Wave patterns.


“¢ Structure is 5-3-5
“¢ wave A must be a motive wave
“¢ wave B can only be a corrective pattern
“¢ wave B must be shorter than wave A by price distance
“¢ wave C must be a motive wave.
“¢ appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in a triple threes

Gregor Horvat

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 His feature articles have been published on,, Action forex, Forex TV, Istockanalyst, ForexFactory,,, etc. He recently won the award on 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!