GBPUSD spiked slightly down early in the London session today after GBP CPI data was released. Ahead of the FOMC coming later today, the following 13 June GBPUSD Elliott wave analysis looks at the technical side.
GBPUSD dropped close to 1.33 today after the release of the CPI data. The data at 2.4% came unchanged from the actual and forecast figures which were also 2.4%. Our forecasts still look at GBPUSD pointing upside toward 1.36. The CPI data might have caused a little price deflection, the main fundamental events of note expected today is the FOMC statements and the US fund rate. The event is usually followed by huge moves in the USD pairs. Technically, we expected USD to drop based on 12th June update on USD Index.
In the last update on GBPUSD, the chart below was used.
The image above is the 15Min chart of Gbpusd showing how price has moved since the 1.335 breakout. The chart shows the corrective rally will be more complex than a simple zigzag pattern. From 1.32 to 1.347, price completed a zigzag pattern with a diagonal end. The move that followed is corrective and indicates that the bullish corrective pattern structure from 1.32 could make a double zigzag. With wave (x) about to complete, we will most likely see higher prices in the coming days especially if price breaks above the wave (x) channel as indicated above. There will big moves this week as the market awaits high impact events.
Wave (x) continued as expected down to 1.332 with a clear double zigzag. The chart below shows the new update.
13 June GBPUSD Elliott wave analysis ahead of the FOMC
The 30 Min chart of GBPUSD above shows price completing wave (x) of a probable double zigzag pattern. Wave (x) also ended with a double zigzag. If price rallies to break above the channel, we should expect more rallies to 1.36. Conversely, if price drops below 1.33, we might see it at 1.32 and probably below which would mean that the correction has already ended with a simple zigzag at 1.347. Stay tuned for the next update.
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