Cable has turned bearish in the shape of an ending diagonal from 1.6243 to 1.7180 that caused a sharp drop in price during the summer.
In fact, the current decline also broke beneath the red trend-line connected from the 1.6460 level that suggests a top is in place, especially if we also consider an impulsive manner from the high.
With that said, GBPUSD will likely remain under pressure in the weeks ahead, while any pullbacks should be corrective and limited on the upside.
GBPUSD Daily Elliott Wave Analysis
As expected, GBPUSD broke to a new low as the rally from the last two weeks to 1.6640 was nothing else than just a correction within the ongoing downtrend. We see prices now falling in a fifth wave, which is a final leg within a larger degree of an impulsive wave structure. We are talking about wave (1) that may find a low by the end of the week. Sooner or later, a new correction will follow, ideally one that will be in three leg up in wave (2).
GBPUSD 4h Elliott Wave AnalysisÂ
