5 June GBP USD Elliott wave analysis ahead UK general election

The UK election comes in few days time. Price stays between 1.3057 and 1.2745. We look at the technical possibilities ahead of the elections based on 5 June GBP USD Elliott wave analysis.

05 JuneAtoZForex – In the last update on GBPUSD, we looked at price climbing higher after a dip. This is expected to come before a large crash. Price is still labelled to be making a long term bullish correction (4th wave). There is a high likelihood the the Cable will crash to par with the USD at the end of the impulse wave completing it. This is the long term view. From the short term perspective, a dip before a rally was very likely as we focused on the last impulsive leg. let’s review the last update. The chart below was used.

23 May GBPUSD Elliott wave analysis GBPUSD Elliott wave analysis, H4 (click to zoom)

Price is at the verge of completing an impulsive wave C of (IV). 1.3182 and its neighborhood has been projected to the impulse wave to complete. A significant break below the channel could lead to price falling for 1000 Pips or more.

Price mad a strong intraday dip to complete the sub-wave (iv) at 1.2745. It now seems that the rally will resume unless strong break below 1.2745 is seen.

5 June GBP USD Elliott wave analysis: what next?

5 June GBP USD Elliott wave analysis: GBPUSD Elliott wave analysis, H6 (click to zoom)

The chart above shows a probable end of the sub-wave (iv) with the possibility of more push to 1.31-1.32 before an eventual crash. The election, of course, will have some momentum but market is expected to calm afterwards. Probably, it’s good to wait till the end of the election before pulling any trigger especially for a technical trader/analyst. But if the rally completes as expected and the dip is triggered by the election, we may see the Cable dip so quickly. The rally caused by the election is expected to be limited upside. While price will move before the election, the real move will be during and after election. More updates will come before and after the election . Stay tuned.

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