Pound's downtrend continues

March 2, 2016 08:48 AM
Elliott Wave Analysis: GBP/USD

The GBP/USD currency pair is making a new leg down that we can now see is a wave 5-circled final leg within extended black wave III, which can be headed down to 261.8% Fibonacci extension target of blue wave one measured of blue wave two high. This projected price is at 1.3600 and we expect it to be touched, before we may expect a corrective bounce; up into wave IV.

GBP/USD, Daily

On the lower time frame, the Cable found some support in the last few sessions near 1.3850 where wave 3) might have finally completed its extended structure from 1.4580. That said, we expect to see a deeper corrective bounce up in red wave 4); possibly even back to 1.4050-1.4100 area where bears could step in play once again for a final push down, into wave 5).

GBP/USD, 4-hour


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 TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/