GBPUSD Upside Looks Corrective

By Orbex

GBPUSD seems to be forming a triple zigzag consisting of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

As we are in the final leg of the combination, that is in the sub-wave Ⓩ, we can expect a double zigzag (W)-(X)-(Y) to complete the pattern.

Following a decline in minor wave X as a double zigzag, analysts anticipate Y to lead prices higher.

In the medium term, the market could continue to move up near 1.4278. At that level, intermediate wave (Y) will be at 123.6% of wave (W).

An alternative scenario suggests that wave Ⓧ has not completed its course yet.

It could take the form of a double zigzag (W)-(X)-(Y). For its full completion, an actionary sub-wave (Y) will be required, which is likely to be a double zigzag W-X-Y.

In the near future, the W-X-Y sub-waves may develop towards 1.3442. At that level, wave Ⓧ will be at 76.4% of wave Ⓨ.

Article by Orbex

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