According to the Elliott Wave Principle, every five-wave impulse is followed by a three-wave retracement in the opposite direction. Once the retracement is over, the trend resumes in the direction of the impulsive sequence. Now, let’s see what would we get, if we apply these rules to the 15-minute chart of GBPUSD.
As visible, GBPUSD rose in five waves from 1.5424 to 1.5616. The anticipated three-wave pull-back seems to have already started, since the pair is now trading near 1.5580. If this count is correct, GBPUSD could fall some more, before the bulls return. However, stay bullish, as long as the invalidation level at 1.5424 holds.