Based on technical analysis GBP/USD Elliott Wave Weekly Forecast, the bearish trend is present in GBP/USD currency pair. I am talking about 4 hours time frame based on GBP/USD Elliott Wave Weekly Forecast. As I have forecasted few hours ago, price of GBP/USD pair is going to drop now to prints a Bearish Double Zig Zag Elliott wave. So, 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 1.2646 price area which is the termination point of Bearish corrective wave W leg. In my judgment, price action in GBP/USD currency pair is now going to move sideways. It will try to complete a Bullish Zig Zag corrective wave pattern – wave X and then starts the decline. Next, market is going to print a bearish wave Y leg. 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, current Bearish trend is part of a Bearish Zig Zag. It is called corrective Elliott wave pattern, wave B leg in higher time frame.
Currently, Bearish corrective Elliott wave pattern, wave Y leg looks in-complete. So, a good idea is to look for a possible sell trading chance to join down trend around 1.2466 price area. However; if price of GBP/USD currency pair breaks above 1.2646 vital resistance level then down trend is going to end. In such a market scenario, it would be best not to trade market and re-do GBP/USD Elliott wave analysis in four hours chart.
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Now, at this point; I must acknowledge that the trend is actually bullish in higher time frame of GBP/USD currency pair.
Below is the daily chart of GBP/USD pair with my Elliott wave forecast which shows us a big picture and a well started bullish trend as well.
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To me; price have printed Bearish impulse wave A leg. So, expect price action in GBP/USD currency pair to move sideways to down first. Next, expects a rise in price action to prints bullish impulse wave C leg. Wave C leg is going to complete Bullish Zig Zag pattern. After that, price is going to prints a medium term top as well. Within Bullish Impulse Elliott wave pattern, all sub-waves must sub-divides into 5, 3, 5,3 and 5 waves pattern.
The following Elliott Wave Bullish Impulse wave pattern diagram shows us a completed Bullish Impulse wave pattern within the frame work of Elliott wave principle.
The Bullish Impulse 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 higher swing highs and higher swing lows. Bullish Impulse Elliott wave pattern in an up trending market could be seen inside the above image. The figure shows what a Bullish Impulse Elliott wave pattern looks like. If a trader knows what a Bullish Impulse Wave 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 Bullish Impulse wave consists of total five waves. Three bullish legs in the favour of an up trend. And two bullish corrective Elliott wave patterns, against the upward market trend. We use numbers to label impulse wave 1, 2, 3, 4 and 5. Inside wave 2 and 4, we use English alphabets to label corrective wave structures. Please take a note that Bullish Impulse Wave pattern is a motive Elliott wave pattern. It appears at a trending market environment and moves in the favour of larger upward market trend.
Based on my GBP/USD forecast using Elliott Wave in daily chart, we have got an in-complete bullish wave C leg. So, market is now going to first drop and then rise up to complete bullish Impulse wave C pattern. However; it is possible if price breaks below green colour support line then forecast will become in-valid. Now, price action is probably going to move sideways. Next, expects further bullish price action in market to complete a Bullish Impulse wave C leg. Wave C is also the last wave which will completes Bullish Zig Zag pattern.
Based on my GBP/USD using Elliott Wave in daily chart, we have got an in-complete bullish wave B Zig Zag leg. So, market is going to first move sideways and then drop more to prints bearish Zig Zag pattern. However; it is possible if price breaks below green colour support line then forecast will become in-valid.
To me; in four hours chart of GBP/USD currency pair the bullish wave Y leg which is part of a higher degree wave B corrective pattern in daily chart is just a bearish leg in an up rend. As mentioned above as Bearish Double Zig Zag corrective wave leg inside a 4 hours chart.
Strong key support level is present at 1.1409 price area in GBP/USD daily chart. So, I expect market to first move sideways for next coming trading days and then may be start moving higher. So, in my opinion market is going to remain bullish overall. And on a medium to long term basis, expects a sideways to bullish leg in market. Next, market is probably going to resume the Bullish trend after that in GBP/USD currency pair, in daily chart.
Now, when an existing Bullish Elliott Wave Weekly Forecast in GBP/USD is going to fail?
Well, the forecast is good for about next two weeks time. And price should stays above 1.1409 support area in daily time frame to keep an up trend alive. A clear bearish break down in price action below 1.1409 support area will end the up trend. It will also fail bullish Elliott Wave Weekly Forecast as well. 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 up in daily chart. A good idea is to look for a buy trade around 1.1850 price area. As price action is going to rise up towards 1.3178. But a clear bearish break down in price action below 1.1409 vital support area will end up trend. On a medium term basis, it is a bearish trend in GBP/USD 4 hours time frame.
A good idea is to take a sell trade around 1.2466 price level. Next, price is probably going to drop lower towards 1.2201 price level. However; if price of GBP/USD currency pair breaks above 1.2646 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.
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