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The current GBPUSD structure hints to a forthcoming bullish zigzag that is represented by cycle waves a-b and c.
Wave a was completed with a 5-wave impulse move, whereas wave b is currently under construction.
The corrective cycle wave, wave b, might as well just be a zigzag pattern consisting of primary sub-waves Ⓐ-Ⓑ and Ⓒ.
Should this scenario prevail, wave Ⓑ of the zigzag could end near 1.338. At that level, wave Ⓑ will be at the 76.4% Fibonacci retracement of impulse wave Ⓐ.
This could be followed by a decline near 1.2571, where cycle wave b will be at the 61.8% Fibonacci retracement of wave a.
Elliot wave theory allows an alternative view of the current structure. This view sees wave Ⓑ of the corrective (A)-(B)-(C) zigzag completed.
This would indicate that primary impulse Ⓒ is already infolding in an impulsive manner.
The alternative scenario assumes that intermediate wave (1) of the final bearish leg is fully completed. Wave (2) however, is still under formation.
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