close icon

GBPUSD a Week Ahead of the News

It has been an interesting week in the FOREX market. The most violent price movements were in the Euro pairs, following ECB’s policy statement, but GBPUSD received its share of volatility as well. The pair initially fell to as low as 1.4117, but then rallied sharply up on Thursday. Right now, it is flying above 1.4430. But we are not going to discuss how and why did the markets digest Mario Draghi’s speech in that way. Yo can read tons of these explanations in other websites. The question, which we believe is much more important, is could GBPUSD’s reaction be predicted, before the ECB’s announcement? Our answer is YES, and the next chart proves it.(some of the marks have been removed for this article)
gbpusd 15m
This chart was sent to our premium clients on March 7th. It shows that GBPUSD’s recovery from 1.3835 was a five-wave impulse. According to the Elliott Wave Principle, every impulse is followed by a three-wave correction in the opposite direction, before the trend resumes. That is why our premium clients received the following guidance: “wait for a three-wave retracement, corresponding in size to the … impulse, and go long” and then “the exchange rate is likely to climb to the area between 1.4400 and 1.4500…
Now let’s see how the situation has been developing throughout this extremely interesting week. The next chart shows how GBPUSD looks like today.
gbpusd update chart
As visible, the three-wave a)-b)-c) correction we have been waiting for, developed as an expanding flat correction with a triangle in wave b). As soon as wave c) breached the bottom of wave a), the correction was over and the uptrend resumed according to plan. With the pair already trading within the target area between 1.4400 and 1.4500, we can say GBPUSD gave us another excellent example, showing why we have chosen the Elliott Wave principle as our forecasting method. Why do not you give it a chance too?

What to expect from now on? What is the bigger picture saying? Is GBPUSD going to continue even higher or the resistance near 1.4450 would turn out to be too strong for the bulls to breach? Prepare yourself for whatever is coming. Order your on demand Elliott Wave analysis now or pre-order the one due out next Monday at our Premium Forecasts section. Stay ahead of the news in any market with the Elliott Wave principle.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Elliott Wave Support Can Send USDZAR 15% Higher

It’s been a bad year for USDZAR bulls. The pair has been declining ever since it reached a high of 19.34 in early-April 2020. As of this writing, it is barely holding above 14.30, down 26% in a little over twelve months. Does this mean now is a good time to join the bears? We…

Read More »

Ahead of EURUSD ‘s Disappointing Start to 2021

Overall, 2020 was a good year for EURUSD bulls. Despite the March crash during the coronavirus-related volatility, the pair ended the year up almost 9%. With more stimulus already in the pipeline at the start of 2021, it made sense to expect further devaluation of the dollar against the Euro. Alas, common sense doesn’t always…

Read More »

USDJPY Gains 450 Pips and Counting in Two Months

2020 wasn’t a good year for USDJPY bulls. Starting from 108.63 in January, the pair closed at 103.32 on December 31st, down 4.9% in twelve months. But what the dollar lost against the yen in the entire 2020 it is now close to recouping in less than three months. USDJPY is approaching 108.50 as of…

Read More »

USDTRY Drop Accelerates as Elliott Wave Predicted

The Turkish Lira hit its highest level against the U.S. dollar in six months. The country economic and legal reforms announced last year coupled with tighter monetary policy appear to be giving the desired effect. USDTRY is down 19.3% from its November 2020 high after being in an uptrend since mid-2008. Most analyst, however, are…

Read More »

EURUSD Surges 570 Pips After Fibonacci Encounter

EURUSD is trading at levels last seen in April 2018, when it was on its way down to 1.0636 by March 2020. The pair is now approaching 1.2200, up 14.5% since the COVID-19 selloff nine months ago. But trends don’t move in a straight line. Two months ago, we showed you how Elliott Wave analysis…

Read More »

USDTRY Heads South After Central Bank Decision

Turkey finally took a decisive step towards taming the double-digit inflation, which has been destroying the Lira’s value for years. The country’s central bank lifted the benchmark interest rate to 15%, up 475 basis points from its previous standing. USDTRY fell as low as 7.5031 earlier today, on track for a second consecutive week of…

Read More »

GBPNZD Can Slide to Sub-1.9000 In Coming Weeks

What will EURUSD, USDJPY and USDCAD bring next week? That is the subject of discussion in our next premium analyses due out on Sunday! GBPNZD exceeded 2.0270 in mid-August, but the bulls could not keep the positive momentum. A month later, the pair fell to 1.9055, losing 6% in the process. And just when it…

Read More »

More analyses