Is GBPUSD ready to break upside to 1.35 and higher? The following 3 July GBPUSD Elliott wave theory looks at the technical forecast of GBPUSD based on Elliott wave theory.
GBPUSD is about to break upside according to our 3 July GBPUSD Elliott wave analysis. Price completed an ending diagonal last week and jumped upside. The diagonal pattern completed as the 5th wave of the bearish impulse wave that started in mid-April. From mid-April till now, price has been very bearish but that may not be the case this month. Corrections often take more time than trends, we might see the whole of this month and a larger part of next month bullish. From our last USDX forecast, we expected a bearish Dollar in the coming days. This could push the prices of GBPUSD and other related currency pairs upside soon. The chart below was used in the last update where we identified the diagonal 5th of the bearish impulse wave from April.
A diagonal 5th? Yes, that’s what could happen. A breakout above the wave (ii)-(iv) connecting trendline is important, to confirm the bullish recovery. Price may advance to 1.38 after the breakout. A 3-wave bullish correction is expected and this means that the larger trend is still bearish. Price should return downside once the correction is over. If there is no breakout or price moves sideways instead, there is bigger chance the diagonal would be violated and price drop below 1.304.
3 July GBPUSD Elliott wave analysis: what next?
Price is already making effort to break above the wave (ii)-(iv) trendline. Once the trendline is broken properly upside, the first bullish target would be the 1.3475 resistance level. The bullish correction is likely going to extend to 1.35-1.38. This forecast will be invalid if price breaks below 1.3050 which is less likely but a possibility. Stay tuned for the next update.
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