GBPUSD started this week with a move downside. What should we expect next? The following 24 July GBPUSD Elliott wave analysis gives technical insights based on Elliott wave theory.
GBPUSD seemed to have completed a bearish impulse wave last week. The trend ended with an expanding diagonal and price deflected upside. At the end of an impulse wave, a 3-wave correction in the opposite direction is the most likely occurrence according to Elliott wave theory. This means that the bullish move that started last week should go even higher. In the last update, we started counting the corrective move . The chart below was used in the last update.
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.
24 July GBPUSD Elliott wave analysis: what next?
Price rallied from 1.2955 last week after the completion of an expanding diagonal pattern to complete a larger degree impulse wave. The bearish correction seen yesterday was a bit shallow. Price could dip further to 1.3058-1.3034 before returning upside. Whether price goes deeper or not, a strong bullish break above 1.316 would confirm end of wave ii and price will be expected to hit 1.3365 target in the near term and 1.355-1.36 in the longer term. Stay tuned for the next update.
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