Elliott Wave Analysis: GBPUSD Undergoing A Complex Correction
GBPUSD is turning down from 1.3447 through trendline support connected from 1.2866 low which suggests that pair will remain trapped in a contracting range. An updated count now shows a triangle in big black wave IV, currently with subwave D) underway to 1.3000 area, where market may turn up for final wave E) that will then complete a big sideways consolidation since July.
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivides into 3-3-3-3-3.
Basic Triangle Pattern:
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