For Traders

Analytical Reviews

Wave analysis

16.03.202112:35 Forex Analysis & Reviews: GBP/USD: Growth possible in bullish momentum

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

GBP/USD, H4:

The long-term formation of the GBP/USD pair hints at an upward triple zigzag. On the four-hour time frame, we see the middle part of this zigzag – the bullish wave Y.

It seems that wave Y is fully equipped with sub-waves [W]-[X]-[Y] and is a double zigzag. The market is currently moving in a downward direction as part of the second wave of bundle X. It is assumed that it will have the structure of a standard zigzag [A]-[B]-[C].

Let's consider the last part of the chart on the hourly time frame.

GBP/USD, H1:

Taking a closer look at the structure of GBP/USD on the H1 time frame, we see that the bearish wave [A], which is a five-wave impulse, has been fully completed in the composition of the downward wave X. Then the price started to rise within the upward correction [B].

Correction wave [B] potential zigzag (a)-(b)-(c). The bearish wave (b) has likely come to an end. Thus, in the short term, we could see the growth of the currency pair in the final impulse wave (c).

It would be profitable for the GBP/USD pair to complete the wave (c) in the 1.4035 mark. At this level, the values of the impulse sub-waves (a) and (c) will be equal to 100% along the Fibonacci lines. Since, according to Elliott's rules, impulse waves in zigzags tend to be equal, the probability of reaching this mark is high.

We will continue to monitor the price behavior in the future.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.