Elliott Wave Analysis: GBPUSD Searching For A Bottom; 1.2650 Zone Could Offer A New Turnaround
GBPUSD fell sharply lower two weeks back after vote counts for EU membership showed that UK wants to leave the Euro zone. Pair fell to a new low which was technically expected as you know since we counted bounce from 1.3850 as a corrective fourth wave. So despite very strong leg down traders should be aware of a turn back to the upside in weeks ahead since we see price in fifth wave of decline; final wave of a five wave fall from 2015 high. Technically speaking 1.2800-1.3800 can be a support area for the pair.
GBPUSD, Daily
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On the lower time frame, GBPUSD is at a new low following recent break out of a triangle that was recognized in wave four. If that was wave four, then current fifth wave down is final part of a bearish impulse from 1.5030 high. That said, traders need to be aware of a limited downside, and a potential turn up into a strong recovery from around 1.2600-1.2700 region. However, rise above 1.3347 will be needed as confirmation for a low in place.
GBPUSD, 4H
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