Published 28th February 2019
There is a 7-wave sequence from the September 2018 high to the downside. That is a corrective pattern. Subsequently, prices broke outside the paramount trend (grey channel). Both observations hint to a high probability setup for a sideways complication. The two most likely patterns are a flat and a double-three within the Elliott wave framework. The cable did not drop after a complete double-three correction in mid-January 2019. It extended further to the upside instead.
Nevertheless, the big picture does not change. The GBP/USD will probably not leave the pale blue area far behind. Its Elliott wave pattern probably morphs in an ending diagonal before minute wave ii(circle) completes. We continue to expect a significant appreciation of the USD versus the GBP.
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.