Elliott Wave Analysis: GBPUSD Potentially Reaching For 1.4600/1.4700 Where Upside Can Be Limited
GBPUSD moved higher yesterday, even slightly above 1.4511 level which means that recovery since late February is not a triangle, but rather a three wave move. However, it’s still a corrective black wave IV which in fact may complete a contra-trend move earlier than we thought, but at higher levels. We are tracking wave C-circled now, which can be making an ending diagonal that could make a top then around 1.4600-1.4700 area. We however will have to wait on impulsive bearish reversal before any “top in place” can be confirmed.
GBPUSD, 4H
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The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns.
An Ending Diagonal Pattern:
http://www.ew-forecast.com/service
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