Published 01st November 2018

The short-term situation in the GBP/USD is getting similar to that in the EUR/USD. There is a three-wave sequence to the upside from the mid-August low. Subsequently, another three-wave sequence went from the September recovery high into today’s low. There is no terminal wave structure within the Elliott wave framework that displays this price pattern. Hence, some follow-through to the downside is most likely. It will either happen immediately or after a sideways correction. The immediate case is depicted in black whereas the sideways case is depicted in red. Odds are exactly balanced between both scenarios.

All in all, we remain bearish on them sterling regardless of a potential extension to the upside.

The analysis above is a historical abstract of our GBP/USD Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.