In this technical blog we’re going to take a quick look at the Elliott Wave charts of GBPUSD. As our members know, the pair shows bearish sequences in the cycle from the June 1st 2021 peak. Incomplete structure calls for a further decline. The pair has made 3 waves bounce recently, that has reached our selling zone. We recommended members to avoid buying and keep selling rallies in 3,7,11 swings. In the further text we are going to explain the Elliott Wave Forecast and the trading strategy.
GBPUSD H1 Elliott Wave Analysis 03.22.2022
GBPUSD is correcting the cycle from the February 18th peak. Recovery shows incomplete sequences at the moment. Consequently we are calling for upside in near term toward 1.3298-1.3348 area to complete 2 red recovery. Although expecting more upside we recommended members to avoid buying the pair in proposed push up. Strategy is waiting for Blue Box to be reached before selling the pair. As the main trend is bearish we expect sellers to appear at the blue box for 3 waves pull back at least. Once pull back reaches 50 Fibs against the ((x)) black low, we will make short position risk free ( put SL at BE) and take partial profits. Invalidation for the trade would be break above 1.618 fibs extension: 1.3436
As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a reaction.
GBPUSD H1 Elliott Wave Analysis 03.23.2022
The pair reached equal legs area at 1.3298 and made turn lower from there. We got a decent reaction from the blue box. As a result , members who took short trades made positions risk free ( Put SL at BE) and took partial profits. At this stage we see potential for another leg up within the cycle from the low. One of the reason for calling another leg up in GBPUSD is EURUSD which shows higher high sequences from the 03/07 low. Alternatively if 1.3085 pivot gives up we can already have 2 red completed at the current high 1.3299. We should keep in mind that extremes from the lows are already reached and another leg up doesn’t need to happen.
