GBP/USD Medium Term Elliott Wave Analysis

The chart presents my long term wave count. It suggests that there was a multi months bullish triangle and the current rise is the movement after its end. It begin at 1.8514 (October 2006) and is developing as a potential terminal impulse (ending diagonal). Such a pattern appears always in the end of a movement so if my suggestion comes true, a reversal of the up-trend started from 2001 year is forthcoming. If I am right, wave 5 of the potential terminal impulse should be very close to its end and a fall below the trendline 2-4 shown on the chart will confirm this idea. In such a case one should expect very sharp and fast fall with a minimum target 1.8514 (the beginning of wave (C)), and much lower thereafter. A key resistance is 2.0617 (at this level wave 3 will become the shortest wave in the impulse which is impossible). The idea for a potential terminal impulse is supported by the MACD indicator because if we see a fall from current levels, a triple divergence will become a fact which is an extremely bearish signal.

Karoll Financial House

For more information and subscription to the full daily and weekly Elliott Wave analysis on Majors go to Karoll.net or mail to This email address is being protected from spam bots, you need Javascript enabled to view it