Based on technical analysis the bearish trend is present in GBP/USD currency pair, 4 hours time frame based on GBP/USD Elliott Wave Weekly Forecast. As I have forecasted few hours ago, the price of GBP/USD pair is going to drop now to prints a Bearish Impulse Elliott wave pattern – wave v and traders should look for a sell trade. So, all those Forex traders who have followed my Elliott wave forecast have made the right decision as price has descended.
Strong key resistance level is present at 1.2661 price area which is the termination point of Bullish Zig Zag wave ii leg. In my judgment, price action in GBP/USD currency pair is now falling down to complete a Bearish Impulse wave v leg as wave iii and wave iv legs looks complete. So, market is going to remain bearish on a short term basis. Next, expects a short term bottom in price action as well. Based on Elliott wave forecast, the current Bearish price action is part of a Bearish corrective Elliott Wave Zig Zag pattern, wave C leg in higher time frame.
Currently, Bearish Impulse Elliott wave pattern, wave v looks in-complete. So, a good idea is to look for a possible sell trading chance to join the down trend around 1.2510 price area. However; if the price of GBP/USD currency pair breaks above 1.2661 vital resistance level then down trend is going to end. In such a market scenario, it would be best not to trade the Forex market and re-do the GBP/USD Elliott wave analysis in four hours chart.
If you are a trader who prefer to use robots and EAs to automate your trades and make them very profitable for you or require very good forex/stock training resources, please check this page.
Now, at this point; I must acknowledge that the trend is also bearish in higher time frame of GBP/USD currency pair.
NB: Interested In Mining Bitcoin And Other Cryptocurrencies for Profit? Now, You Can Mine Better, Faster and Smarter for More Profits With The Ready to Use, "High Performance", and Approved IQ Mining BTC Cloud Service For Miners. With This Mining Service, You Will Get Up to 128% Yearly ROI from Mining Bitcoins Alone Without Having to Buy Any Expensive Mining Hardwares and Softwares! Not Only That, You Will Get Your First Payout In First Few Hours After Buying a Plan With IQ Mining. You’re Also Given a Dedicated Account Manager After You Buy A Plan Who Will Help You With the Best Pool Allocations and Account Setup Plans To Get the Most Out of Your Purchase.
Below is the daily chart of GBP/USD pair with my Elliott wave forecast which shows us a big picture and a well started bearish trend as well.
To me; price is printing bearish corrective wave C leg. Now, price action is rising down to complete the Bearish Impulse wave C Zig Zag pattern. So, now market is moving down on a long term basis. On a long term forecast basis, the trend is down. So, the bearish corrective wave C leg is the last and final decline. Price action is now going to prints a long term bottom after that. Within the Bearish corrective Zig Zag Elliott wave pattern, all sub-waves must sub-divides into 5, 3 and 5 waves pattern.
The following Elliott Wave Bearish Zig Zag corrective pattern diagram shows us a completed Bearish Zig Zag pattern within the frame work of Elliott wave principle.
The bearish Zig Zag wave pattern of the Elliott wave principle shows that how price action does not moves in a straight line fashion but in a series of lows (retracements) and highs (rises). Bearish Zig Zag Elliott wave pattern in a down trending market could be seen inside the above image. The figure shows what a Bearish Zig Zag Elliott wave pattern looks like. If a trader knows what a bearish Zig Zag pattern looks like, then it would become much easy for a currency trader to actually analyze the Forex charts and make a trading decision as well.
A Bearish Zig Zag consists of two Impulse Elliott wave patterns, joined by a B wave. We use A English alphabet to label first impulse Zig Zag wave leg and we use C English alphabet to label second Impulse Zig Zag wave leg. Please take a note that Bearish Zig Zag pattern is a corrective Elliott wave pattern which appears at a pull back in a main down market trend.
Based on my GBP/USD technical analysis using Elliott Wave in daily chart, we have got an in-complete Bearish corrective wave B leg and price action is now rising up to first finish it – Wave B bearish leg. However; it is possible if price breaks above blue colour resistance line then forecast will become in-valid. Now, price action is probably going to move sideways to up and then falls down more to prints a bearish wave C leg. To me; in four hours chart of GBP/USD currency pair the bearish leg – wave y which is part of a higher degree wave B leg in daily chart is just a bearish pull back in a down trend as mentioned above as wave B corrective Zig Zag pattern inside a daily price chart.
Strong key resistance level is present at 1.3380 price area in GBP/USD daily chart. So, I expect market to first move sideways for next coming trading days and then may be starts the decline. So, in my opinion market is going to remain bearish overall and on a long term basis, expects a bearish leg in market. So, market is probably going to resume the down trend in GBP/USD currency pair, in daily chart.
Now, when an existing Bearish Elliott Wave Long Term Forecast in GBP/USD is going to fail?
Well, the forecast is good for about next two weeks time and price should stays below 1.3380 resistance area in daily time frame to keep the down trend alive. A clear bearish break out in price action above 1.3380 resistance area will end the down trend and bearish Elliott Wave Long Term Forecast; in such a market scenario, it would be best not to trade the market and re-analyze GBP/USD daily chart.
Based on GBP/USD Elliott Wave Weekly Forecast the trend is down in daily chart and a good idea is to look for a sell trade around 1.2455 price area, as price is going to drop more towards 1.2144 but a clear bullish break out in price action above 1.3380 vital resistance area will end the down trend. On a medium term basis, it is a bearish trend in GBP/USD 4 hours time frame and a good idea is to take a sell trade around 1.2510 price level and price is probably going to drop more towards 1.2400 price level. However; if the price of GBP/USD currency pair breaks below 1.2661 vital resistance level then bearish trend is going to end. We recommend trading with these top-rated brokers when using our signals/analyses/forecasts as they handle your trades quicker and more efficiently with very low spreads and most of them have high trade execution rate.
Help Us Fight Scams. Please Donate to Support Our Work. No Amount is too Little or too Big. Thank You..
February 8, 2019 By Ghazanfar
The phrase ‘Necessity is the mother of invention’ seems true for Iran. This is because Iran has unveiled its own...
February 8, 2019 By Ghazanfar
In spite of long bear market, Bitcoin transactions per day are increasing. Today the level of these transactions has touched...
February 4, 2019 By Ghazanfar
Although bear market in crypto world is extending, yet many fiat currencies are facing the threat of destabilization. This is...
February 4, 2019 By Ghazanfar
In spite of mix signals from the cryptocurrency world about the future of cryptocurrencies, many countries are planning to test...
February 3, 2019 By Ghazanfar
The idea of Bitcoin adoption as an international currency is not at all new. Over the years, many financial experts...
February 2, 2019 By Ghazanfar
Bitcoin’s entry into the longest ever bear market in history is one of the most burning issues of today. The...
Valforex.com cannot be held liable for any damages incurred due to the usage of any information displayed on this website. The information and trading guides found on the website constitute the authors’ opinion only. Both Forex and Binary options involve high-risk and are not suitable for all investors. Either Forex or Binary options may not be legal in your jurisdiction. It’s visitors’ responsibility to make sure these entities are legal in their jurisdiction before engaging in trading activity… Read More