Elliott Wave Analyisis: GBPUSD In A New Possible Reversal
GBPUSD fell sharply lower a month 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 the final wave V was in store. As we see now price made a nice little impulse from the lows, which could be the beginning of a new bullish sequence, meaning that higher degree decline is completed.
If price breaks beneath the wave C) low, then wave V could still be unfolding.
GBPUSD, Daily
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On the lower time frame, GBPUSD rallied up to 1.3480 area three weeks ago and confirmed a bullish turn on this pair as we can count clear five waves up from 1.2800 low. We know that five wave move shows direction of a trend so more gains are expected to come after any corrective retracement that can take place. Currently we see price trading higher from wave 2 or B lows, possibly in a new bullish cycle that had started to unfold in blue wave 3-circled. Our mentioned wave X) swing has been quite nicely breached, which could give us a nice confirmation sign that more upside could be in store. But nothing moves in straight lines, so we would need to be aware of minor corrective retracements.
GBPUSD, 4H
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