The British pound moved to a new swing high against the U.S. dollar (FOREX:GBPUSD) two weeks back, but then turned sharply down from the 1.6660 level, so our count from the past weeks remains valid. We are tracking a complex correction from July 2013 that can be wave E), final leg of a wave (B) triangle pattern. If that is the case, then market should move impulsively to the downside while the 1.6780 high from April of 2011 must stay in place.
GBP/USD Daily Elliott Wave Analysis
Count #2 Five Wave Up, Now Three Wave Down
Our second impulsive count posted below also suggest that GBP/USD will turn bearish, even if just temporary for a thee leg decline.