GBPUSD rallied last week after completing a price reversal wave pattern. How far would the rally go? The following 23 July GBPUSD Elliott wave analysis shares technical insights based on Elliott wave theory.
After price completed an expanding diagonal last week, it rallied swiftly triggered by a falling Dollar. At the same region where the expending triangle completed, a butterfly harmonic pattern also completed there. Price dipped to the reversal zone and rallied swiftly from there. In the last update, we discussed price levels to be taken out to confirm this bullish scenario. The chart below was used in the last update.
Price is now at the base of the diagonal which could act as a support before price reverses. A bridge above 1.309 should be the first signal of a bullish move. A proper break above the wave (iv)-(v) channel would be a more assured bullish signal. Price is expected to rally above 1.3365 up to 1.36 if it agrees with this forecast. A fast dip below 1.295 up to 1.29 would invalidate this forecast.
23 July GBPUSD Elliott wave analysis: what next?
Price stayed above 1.2955 and rallied above 1.309 which shows that the bulls are coming up gradually. A slight bullish move above the channel is not convincing enough. Price might be resisted there and makes a corrective dip to any price between 1.309 and 1.2955 (most probably their midpoint) before catching the bullish fire. A dip below 1.2955 would make this wave forecast invalid. If price moves as expected, the next hurdle would be the expanding channel resistance line close to 1.3365. Stay tuned for the next update.
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