
It has been a rough week for the GBPUSD. Just as it seemed the pair was going to approach the previous multi-month high at 1.4770, the bears ran out of patience and caused a plunge to 1.4385 so far. Obviously, the resistance of 1.4770 turned out to be too strong for the bulls to breach, but could we predict GBPUSD was not going to be able to break it before it was too late? The chart below proves the rate’s plunge did not come out of the blue. It was sent to our premium clients before the markets opened on Monday, May 30th.(some of the marks have been removed for this article)
As visible, after a careful Elliott Wave analysis, we thought GBPUSD was likely to weaken this week. And if that is not enough, the Elliott Wave Principle provided a specific invalidation level to guide us, which has not been disturbed so far. Let’s take a look at an updated chart of GBPUSD now.
After a short-lived recovery in the first couple of days, the pair eventually surrendered to the bearish pressure, just as the forecast suggested. However, in order to continue to the south, GBPUSD needs to break the support of the rising trend line, connecting the last two bottoms. That might be a tough task at first.
What to expect from now on? What is the bigger picture saying? Is GBPUSD going to continue even lower or the support near 1.4400 would turn out to be too strong for the bears to breach? Prepare yourself for whatever is coming. Order your Elliott Wave analysis due out next Monday at our Premium Forecasts section. Stay ahead of the news in any market with the Elliott Wave principle.