GBPUSD is on course to continue the bearish correction. Will price resume upside afterwards? The following 1 August GBPUSD Elliott wave analysis looks at what could happen next.
This week, GBPUSD has stayed above 1.31 and hit an intraday 1.3170 top. Currently, price is dropping and might hit below 1.31 handle down to 1.3050 in a short term bearish correction. In the last update, we expected a bearish correction down to 1.3154 before the larger bullish correction resumes. The chart below was used.
The dip from 1.321 is expected to take the corrective legs. Price is still on the bullish correction until it breaks below 1.2958. Wave c (circled) could could extend to 1.3050. At the end of the bearish correction around 1.3050, we will likely see the larger bullish correction continue toward 1.34-1.35. New buyers can wait for wave c (circled) leg to complete before looking for bullish opportunities.
1 August GBPUSD Elliott wave analysis: what next?
Further dip below 1.31 would see price drop to a bullish reversal zone. There are at least three important technical tools pointing to 1.3040-1.3055 as the zone where bullish interests might pick up again. If this happens, we can expect a big rally up to 1.34-35 to complete a bigger bullish correction. If price dips fast below this zone, we will look for other price reversal zones above 1.2958 using harmonic patterns, especially the Bat pattern. Stay tuned for the next update.
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