By Orbex
The current GBPUSD structure hints at a bearish zigzag consisting of primary waves Ⓐ-Ⓑ-Ⓒ.
The first two waves of the structure are fully completed: wave Ⓐ- formed a 5-wave impulse, wave Ⓑ has taken the form of a triangle, wave Ⓒ is still under development and expected to have to maintain wave Ⓐ- ‘s pattern; a 5-wave impulse.
The bearish 5-wave impulse is expected to be completed near 1.1595. At that level, prices will reach the 261.8% extension of wave Ⓐ.
Without a meaningful retracement so far though, we must consider an alternative scenario.
In this scenario, the i primary impulse Ⓒ formed as we speak, is seen as an intermediate impulse wave (1). This suggests further weakness than the first scenario does.
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
This wave can find an intermediate bottom near 1.1618, in which case, minor wave 5 will be at the 150% extension of minor bearish impulse 3.
After the completion of the impulse (1), we could see a small correction in minor (2) near the 1.2400 area. This target would respect the tenancy prices retracing 50% of wave (1).
By Orbex
