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 Setup Helps EURUSD Add 325 Pips

EURUSD has been under pressure for over two years now. The pair reached 1.2556 in February 2018, but has been making lower lows and lower highs ever since. Yet, the past couple of weeks painted a different picture. Between May 18th and May 29th, the euro surged 325 pips against the U.S. dollar. In those…

Read More »

EURGBP Pattern Signals Bullish Reversal Ahead

EURGBP has been in free fall since March 19th, when it rose to 0.9500. A month and a half later now, the pair is hovering below 0.8730, down 8% from the peak. Is the downtrend going to continue or should we expect a change of direction? That is the question we hope to answer in…

Read More »

GBPUSD Aiming at 1.30, but May Tumble to 1.21 First

Not long ago, we shared our long-term view of GBPUSD. In our opinion, the down-phase of the pair’s cycle, which is in its 13th year now, is almost over. One last dip to 1.1000 is likely to be followed by a major bearish reversal and the start of the next up-phase. Now, we are going…

Read More »

British Pound ‘s 13-Year Downtrend Almost Over

The thirteen-year period between 2007 and 2020 started with the biggest crisis since the Great Depression and is about to end with the biggest crisis since the Great Depression. Between the two, the longest economic expansion on record took place. And while stock markets around the world reflected that recovery, some currencies have been in…

Read More »

Ahead of the Move: EURUSD Adds 500 Pips in a Week

At the start of last week EURUSD was trading below 1.0700. The pair had fallen from as high as 1.1496 in just two weeks as coronavirus cases in Western Europe kept climbing disturbingly fast. And while fundamental traders had every reason to expect more weakness, the charts were sending a different message. The Elliott Wave…

Read More »

GBPUSD Completes Pattern, Uptrend to Resume

When we last wrote about GBPUSD Britain was still an EU member. Today, that is no longer the case as the country left the Union on January 31st. On the other hand, the pair is roughly unchanged, currently hovering around 1.2900. In fact, GBPUSD has been tracking a classic Elliott Wave pattern. Take a look…

Read More »

GBPUSD To Resume Uptrend Once Correction Ends

The Brexit saga continues as Boris Johnson’s re-election puts Britain firmly on the path of leaving the EU on January 31st 2020. And while the results of the June 2016 referendum caused a crash to 1.1650 by October 2016, GBPUSD is trading near 1.3100 today. The chart below reveals the structure of the recent recovery…

Read More »

More analyses