GBPUSD could find support beneath 1.60

The GBPUSD exchange rate dropped by more than 1100 pips during the last two months. Traders are probably wondering if it is time for a larger correction. In mid-1930s Ralph Nelson Elliott wrote, that price trends move in waves. He formulated the general postulate of his Wave Principle as follows: five waves in the direction of…

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GBP USD, we were waiting for this

On May 17th we published a long-term forecast called “GBPUSD, not as optimistic as it seems“. In that material we assumed that GBPUSD is forming an ending diagonal in wave “c” of Y. Ending diagonals are only an idea, until they are confirmed by a breakout. Having that in mind, let’s see an updated daily…

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GBPUSD, the beginning of the end?

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…

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GBPUSD with one last move to the north

On the 30-minute chart of GBPUSD, there is something, which looks much like a triangle. Triangles are corrective patterns, that only occur before the final swing of the larger trend. In this case, we think it is wave B of an A-B-C zig-zag. Once the triangle is finished, we will be expecting GBPUSD to reach…

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GBPUSD, not as optimistic as it seems

GBPUSD has been in a strong uptrend for quite a long time. The pair managed to climb up from 1.4812 to nearly 1.70 without making a major correction. Some people even say the strength of the Great Britain Pound may soon start hurting Britain’s economy, since it makes British goods and services relatively expensive. But…

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Elliott works, even on a 5-min chart

Yesterday in our intraday section we showed you a forecast of GBPUSD on a 5-minute chart. All we needed was a five-wave structure, which we had, so we were expecting more strength from this pair. Below you can see how the chart looked like back then. On the next chart you will see how GBPUSD developed…

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GBPUSD intraday strength

Five waves to the upside on the 5-minute chart of GBPUSD means that we should expect new highs after the end of wave (2)/B down. The invalidation level is at 1.6820.

GBPUSD, five moves predicted

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…

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GBPUSD and the Fibonacci magic

GBPUSD formed a top at 1.6822 on February 17th 2014 and has been in corrective mode for more than a month, bottoming at 1.6460 on March 24th. If we look at the 4-hour chart of GBPUSD, we could see that the price action has formed a classical 5-3 Elliott Wave pattern. What is more interesting…

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GBPUSD could provide two opportunities

In our opinion GBPUSD could provide two opportunities. The first one is to sell. On the 15-minute chart we have to wait for wave “b” to end around 1.6680 and go short for wave “c” down. This pair could fall as low as 1.6550. The second opportunity should occur, when wave “c” ends. On the…

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What is an Expanding Triangle?

In terms of position of occurrence, wave structure and consequences the expanding triangle is the same as the regular contracting triangle. It can occur as a wave X, wave B or wave 4. It is a sideways movement. It consists of 5 waves marked a-b-c-d-e, structured 3-3-3-3-3. It also precedes the final movement of the…

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