GBPUSD Cycle Wave Y Hints At Double Zigzag

By Orbex

The current structure of the GBPUSD pair suggests a large cycle double w-x-y zigzag in the long term.

It is likely that the cycle intervening wave x has come to an end. It consists of primary sub-waves Ⓦ-Ⓧ-Ⓨ and has the form of a double zigzag.

From the beginning of October to the present day, the price rises within the initial part of the actionary wave y. This can take the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ, as shown on the chart.

The price could rise above the high of 1.3986, which was marked by the primary intervening wave Ⓧ.

An alternative scenario shows that the construction of the cycle wave x will continue. Its final primary wave Ⓨ could be more complex in structure than in the first scenario. And it may take the form of an intermediate triple zigzag (W)-(X)-(Y)-(X)-(Z).

In the short term, the pair could decline in the intermediate wave (Z) near 1.330. At that level, primary actionary sub-waves Ⓨ and Ⓦ will be equal.

Then the cycle wave y can send the market above the high of 1.391.

Article by Orbex

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