By Orbex
The formation of GBPUSD hints at the development of a corrective trend. Most likely, a triple zigzag is currently under construction. This consists of sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ of the primary degree.
The first four parts of this construction are fully completed. In April, the bulls began to push prices up in the final actionary wave Ⓩ. Most likely, wave Ⓩ will have the structure of a double combination (W)-(X)-(Y) of the intermediate degree.
Waves (W) and (X) have ended and the development of the last bullish wave (Y) has just begun.
It is possible that the price in the wave (Y) will rise to 1.4490, that is, significantly above the maximum of 1.4254. At that level, intermediate wave (Y) will be at 123.6% of wave (W).
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An alternative scenario suggests that the market has completed only part of the global triple zigzag, that is wave Ⓨ.
Therefore, we could expect the development of the second intervening wave Ⓧ. This wave could have the internal structure of an intermediate double zigzag (W)-(X)-(Y).
In the near future, market participants could see the end of the intermediate zigzag wave (X). Then the price will continue to fall in the last wave (Y) to 1.3449. At that level, wave Ⓧ will be at 76.4% of wave Ⓨ.
By Orbex
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