GBPUSD Bulls Looking to Finish 2023 Strong

Bullish   

It’s been over a year since Liz Truss’ mini-budget plunged GBPUSD to under 1.0400 in September, 2022. The Pound Sterling is looking much better now, trading above 1.2700 and on track to finish 2023 in positive territory. For a currency, which has devalued by as much as 40% against the US dollar since 2007, this is no small feat. It wasn’t a smooth ride, though, as the pair barely held above 1.2000 just two months ago. Assuming no major external shocks this month, the bulls should celebrate at the end of December. What can we expect in 2024? This is the subject of this article.

Similar Elliott Wave setups occur in the crypto, commodity and stock markets, as well. Our Elliott Wave Video Course can teach you how to recognize them yourself!

GBPUSD poised to finish 2023 in the green

The 4-hour chart of GBPUSD reveals the structure of the recovery from 1.0360. It consists of two parts – motive and corrective. The motive one involves a five-wave impulse up to 1.2448 in January, 2023, labeled 1-2-3-4-5 in wave (1/A). Wave 2 is a running flat correction, followed by an extended wave 3, whose five sub-waves are also visible. Wave 5 exceeds the top of wave 3 by just a pip.

The end of wave 5 of (1/A) marks the beginning of an A-B-C running flat retracement in wave (2/B). This is the corrective phase of the Elliott Wave cycle on the 4h chart of GBPUSD. Wave A is a simple a-b-c zigzag with a triangle in wave ‘b’. Wave B is also a zigzag, where the impulsive structure of wave ‘c’ is marked i-ii-iii-iv-v. Wave C then dragged the pair to 1.2037 in October, where the entire pattern seems to have ended.

If this count is correct, the uptrend has officially resumed and we can anticipate much higher levels in GBPUSD going forward. Not only should the bulls exceed the top of wave B at 1.3142, but they can also go for the resistance near 1.4000 in the months ahead. All told, 2024 looks promising, especially given the high probability of interest rate cuts in the US.

In our Elliott Wave PRO subscriptions we provide analyses of Bitcoin, Gold, Crude Oil, EURUSD, USDCAD, USDJPY and the S&P 500 every Sunday and Wednesday! Check them out now!

New to Elliott Wave?

Elliott Wave principle offers a completely new understanding of what the nature of the markets is, what drives them and what can be derived from their movement. This course is for those of you, who have been looking for an honest Elliott Wave guide, describing the method’s advantages over other trading tools, but not hiding its weaknesses.

Check Video Course    or     Check our eBook


See our Video Course
or check our eBook

Last year over 60k readers trusted EWM Interactive to help them in their trading decisions.

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- Xavier N.

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- J. Kotzee

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- C. Montgomery

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- C. Montgomery