Elliott wave Analysis: GBPUSD Unfolding a Five-wave Rally, and DAX A Temporary Correction
GBPUSD is recovering sharply from the 1.267 level, giving us a sign that corrective wave 2)/B) had ended, and that now wave 3) or C) is in play. In such case, a five-wave rally is expected to show up, which can later stop and look for resistance near the 1.330/1.3400 area. That said, currently we are observing price unfolding corrective leg 4 of 3)/C), which can face support and a bounce into a new high near the 1.311/1.304 region, where Fibonacci ratio of 23.6 and the 38.2 sit.
German DAX made a recovery in five waves, up from the 10280 level which we labelled as wave 1 of a higher degree. Ideally a top has been posted for sub-wave v of 1 at the 11250 level, from where a three-wave correction started to unravel. This three-wave pullback can later look for support and a new bullish recovery near the 10818/10675 region.
German DAX, 4h
Disclosure: Please be informed that information we provide is NOT trading recommendation or investment advice. All of our work is for educational purposes only.
Find more: Contributing Authors