British pound faces top and bearish reversal: Elliott Wave

The British pound found some resistance against the dollar (FOREX:GBPUSD) recently around the 1.6600 figure, which is where we think the pair will form a top even if just temporary. Our primary count suggests that GBP/USD will fall in impulsive fashion because of a big picture with a bearish triangle. But for this confirmed scenario, we need an impulsive sell-off back to 1.5500. For us the most important is probability on short-term swings. As such, we are also tracking the second wave count, which is different on a big scale but same on the short-term. We see a completed five-waves up that now suggests a three-wave retracement back to 1.5900. As such, it seems that GBP/USD will be weakening in the next few weeks.

GBP/USD Daily Elliott Wave Analysis #1-correction from July 2013 low

GBP/USD Daily Elliott Wave Analysis #2- five up, now three down

On the four-hour chart BPU/SD is showing bearish pattern after an impulsive drop in price from 1.6600 followed by recent three-wave rally from 1.6220 low that is a corrective move, most likely wave (ii) that will complete current rise around 1.6500 region. A break of 1.6380 swing low may put the pair in bearish mode for 1.6220.

GBP/USD four-hour Elliott Wave Analysis

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and He also is founder of forex services on provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website:

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