GBPUSD: Recent Strong Prices Suggest That Higher Degree Correction Is Still Not Over; 1.4800 Possible Reversal Zone
GBPUSD is in recovery mode since March of this year when pair accomplished an extended five wave drop down in wave III. We know that after a very powerful leg, market will make a corrective retracement which will either be simple or complex. In our case we think it’s something more complex now in wave IV if we consider recent push back to around 1.4700 that is part of ongoing wave Y in wave IV that may find a top in June somewhere near 1.4800, slightly above 50% Fibonacci retracement level.
GBPUSD, Daily
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On the lower time frame, GBPUSD has turned sharply lower last week so it appears that correction since start of May is still in play. We are talking about a possible A-B and C retracement that looks like a flat pattern with a 3-3-5 sub-structure. As such, despite strong decline in the last week or so, we see current five wave drop as end of red wave B) that can be looking for a bottom this week around 1.4300 area.
GBPUSD, 4H
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