Four days ago, on 19th October, we showed you a 4-hour chart of GBPUSD in an article called “Decreasing Selling Pressure on GBP USD”. The corrective recovery, which we told you about in this material seems to be still in progress. In order to gain deeper knowledge of the wave structure of the rise, we will take a look at a 30-minute chart.
It appears that the rally from 1.5873 to 1.6183 takes the form of a five-wave impulse, marked as wave A. According to the Elliott Wave Principle, every impulse is followed by a correction. The pull-back from 1.6183 should be this correction, labeled “B”, which may find support around the 61.8% Fibonacci level. If this is the correct count, GBP USD may soon start rising towards 1.64 for wave C to the upside.
