GBPUSD Elliott Wave Analysis Trading Lounge
British Pound/U.S. Dollar (GBPUSD) Day ChartGBPUSD Elliott Wave Technical Analysis
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The analysis suggests navy blue wave 2 is likely completed, with navy blue wave 3 now in progress.
Market Analysis OverviewThis analysis evaluates the GBPUSD currency pair using Elliott Wave theory on a daily chart, identifying a bearish trend. The market is currently in an impulsive mode, indicating a strong and sustained downward movement.Key Wave Structure:
Next Anticipated Market ShiftThe market is expected to eventually shift toward navy blue wave 4, a corrective phase likely to follow the completion of wave 3.Invalidation LevelAn important invalidation level is set at 1.30559. If the price rises to this level, the current Elliott Wave count and bearish outlook will no longer hold. This threshold is crucial for traders as it provides a reference point for reassessing trading positions and managing risk effectively.ConclusionThe Elliott Wave analysis indicates GBPUSD is firmly within a bearish phase, driven by the progression of navy blue wave 3.
Traders should focus on the continuation of the downward trend while preparing for potential corrective movements as wave 3 completes and transitions toward navy blue wave 4.British Pound/U.S. Dollar (GBPUSD) 4-Hour ChartGBPUSD Elliott Wave Technical Analysis
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Orange wave 4 is likely completed, and orange wave 5 of navy blue wave 3 is currently unfolding.
Market Analysis OverviewThis analysis examines the GBPUSD (British Pound/U.S. Dollar) currency pair using Elliott Wave theory on a 4-hour chart, identifying a bearish trend with an impulsive mode.Key Wave Structure:
Next Market MovementsThe bearish trend is anticipated to persist as orange wave 5 progresses, completing the movement of navy blue wave 3. Following this phase, a shift toward navy blue wave 4 (a corrective phase) is expected.Invalidation LevelThe invalidation level for the current wave structure is set at 1.27159. If the price rises to this level, the current Elliott Wave count and bearish outlook will no longer be valid. This threshold provides a critical reference point for traders to manage risk effectively.ConclusionThe Elliott Wave analysis projects that GBPUSD remains in a bearish phase, with orange wave 5 currently unfolding within the larger navy blue wave 3.
This analysis underscores the importance of observing wave structures for effective risk management and trading strategies.Technical Analyst: Malik AwaisMore By This Author:
