On July 14th we published an intraday analysis of GBPUSD, titled “GBPUSD with one last move to the north”. In that piece of material we were expecting a thrust in wave C to the upside from a presumed wave B triangle. “Once the triangle is finished, we will be expecting GBPUSD to reach 1.7200 in wave C. GBPUSD should not go above 1.7225” These assumptions were based on the chart below.
Now, 15 days later, we can say that the triangle failed, but the rest of the forecast went quite well. Instead of a triangle, wave B developed as a double zig-zag labeled w-x-y. When it was completed, GBPUSD resumed its uptrend, leading prices as high as 1.7190. Once this level was reached, the pair started declining just as we expected and is now trading below 1.70. The next chart will visualize all these explanations for you.
In conclusion, GBPUSD has been going according to plan so far. Furthermore, prices did not reach 1.7225, which means that our big picture scenario remains valid.
Recommended reading: GBPUSD, not as optimistic as it seems
If we follow this count, then the top of 1.7190 may prove to be the last one for a long time ahead.
