16.04.202113:13 Forex Analysis & Reviews: Wave analysis for GBP/USD on April 16, 2021

GBP/USD, H4 chart:

We will conclude the current trading week with a review of the situation for the GBP/USD currency pair. Let's consider it:

The market is still forming a downward wave bundle X, which takes a triple zigzag form. At the moment, we are in the final part of this triple zigzag, that is, wave [Z].

Like the first two operating sub-waves [W] and [Y], it is likely that wave [Z] will take the form of a standard zigzag (A)-(B)-(C).

Now, let's take a look at the details of the structure of wave [Z] on the hourly time frame.

GBP/USD, H1 chart:

Here, the downward wave [Z] consists of three main sub-waves (A)-(B)-(C).

The descending impulse wave (A), which consists of five sub-waves 1-2-3-4-5, was already done. And apparently, the upward corrective wave (B) has also come to an end. It is worth noting that it is a triple combination of zigzags and consists of sub-waves WXY-XX-Z. The [Z] sub-wave has a complex double zigzag formation.

After the correction (B) was completed, we saw a price reversal and the beginning of the development of an impulse wave (C). It is assumed that a small bullish correction 2 is now being formed.

Market participants can expect the end of the impulse wave (C) to reach the level of 1.3585. At this level, the values of the waves [Z] and [Y] will be equal to 100% on the Fibonacci lines.

Given the current situation, one can consider opening sales transactions.