GBPUSD is set to continue the intraday bearish correction despite the current rally. The following 30 July GBPUSD Elliott wave analysis looks at what could happen next.
Price reacted to a bearish Gartley pattern last week. At the end of the pattern, price dropped exactly at the zone of reversal we identified. We expected the dip to be corrective. From a larger degree, price is making effort toward a bullish correction which is expected to hit 1.34-35 or even more. The move started from the rally that led to the completion of the Gartley pattern at 1.3210. The drop from the rally is expected to end around 1.305 before price resumes upside. The chart below was used in the last update.
Price dropped exactly from the Gartley reversal zone and dipped more than 90 Pips and might get to 160 Pips at 1.3054. From 1.2955, we have started counting a new wave upside. The diagonal was expected to end a much larger impulse wave which should be followed by at least a 3-wave bullish correction. Wave (a) might have ended where the Gartley ended. The current drop might be wave (b) which is expected to end around 1.3054. At the end of the current dip, a new bullish move is very much likely to happen upside.
30 July GBPUSD Elliott wave analysis; what next?
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.
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