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GBP/USD made three legs up from 1.4810, called a zig-zag that found resistance just slightly above the 61.8% retracement area as noted in our past updates.

Notice that the market reversed impulsively down from 1.5430 which means that the rally is complete and that bears are now stronger, so expect even lower levels in the days ahead, especially after a minor three wave bounce. We will look down as long as 1.5430 is in place.

gbp usd Aug 02 2013 4h technical analysis for Elliott Wave trading

Zig-zag

A zig-zag is a 3-wave structure labeled A-B-C, generally moving counter to the larger trend. It is one of the most common corrective Elliott patterns.

ZIG ZAG Elliott Wave Analysis