Elliott Wave - GBP/USD

GBP/USD Elliott Wave Analysis

It looks like the down trend on the cable is not completed yet; there could be some extreme selling pound in this week it seems, especially because of poor sterling fundamentals and U.K. stock selling. Wednesday has the MPC meeting minutes on the schedule, which will probably make for a more bearish pound.

From a technical view we can say that market is trading in a significant short area with the prices just below the red trend line resistance of the triangle. We can also see a three wave move in this wave IV with the top between the 38.20% and 50% of wave III. We may see stronger dollar in the next few sessions, especially if the equities continue declining, and in that case the pound may have just one last relief rally before a move back into the short trend.

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