On March 11th we showed you our analysis on GBPUSD. We were then considering a double zig-zag correction under construction, with waves “b” and “c” of Y left, after which the uptrend was expected to resume. On the chart below you can see how the situation developed.
So, the market has been going according to our forecast and we have had correctly predicted all three moves in wave “b” and “c” of Y, plus wave 1/a of the new trend. But we knew that markets rarely go in a straight line, so we showed you an update, in which we were expecting a pullback to the 1.6540 area, before prices go up again. As shown on the chart below, the market was our friend once again.
As it turned out, GBPUSD fell to 1.6547, where the trend has been restarted, reaching our upside target of 1.6820. This increases the number of predicted moves in GBPUSD to five consecutive, quite well. Of course there could still be some upside potential for this pair, but a disciplined trader should not be greedy.
