British Pound/ U.S. Dollar (GBPUSD) Elliott Wave Analysis Trading Lounge Day Chart
GBPUSD Elliott Wave Technical Analysis
Function: Bearish Trend
Mode: Impulsive
Structure: Orange Wave 3
Position: Navy Blue Wave 3
Direction of Next Lower Degrees: Orange Wave 3 (in progress)
Details
The GBPUSD daily chart reflects a bearish trend following Elliott Wave principles.
- The current wave structure is orange wave 3, part of the impulsive sequence within navy blue wave 3, signaling sustained downward market pressure.
- The completion of orange wave 2 sets the stage for the active development of orange wave 3 within navy blue wave 3.
- Consistent with Elliott Wave Theory, impulsive waves signify strong directional momentum, and orange wave 3 highlights an extended bearish phase with further potential for price declines.
Key Technical Level
- Wave Cancellation/Invalidation Level: 1.30502
- If the market surpasses this level, the current wave structure must be re-evaluated, possibly indicating a divergence from the bearish trend projection.
This structured Elliott Wave analysis aids traders in interpreting GBPUSD’s ongoing bearish momentum. By focusing on critical levels and directional trends, it provides actionable insights into the market's current downward trajectory.
British Pound/ U.S. Dollar (GBPUSD) Elliott Wave Analysis Trading Lounge 4-Hour Chart
GBPUSD Elliott Wave Technical Analysis
- Function: Bearish Trend
- Mode: Impulsive
- Structure: Orange Wave 3
- Position: Navy Blue Wave 3
- Direction of Next Lower Degrees: Orange Wave 3 (in progress)
Details
The GBPUSD 4-hour chart reinforces the bearish trend based on Elliott Wave analysis.
- The ongoing wave structure is orange wave 3, a component of the impulsive sequence within navy blue wave 3, indicating continued downward momentum.
- With orange wave 2 likely completed, orange wave 3 has commenced within navy blue wave 3, consistent with Elliott Wave principles of strong directional movement in impulsive waves.
- This progression underscores a significant bearish phase with potential for further price reductions.
Key Technical Level
- Wave Cancellation/Invalidation Level: 1.30502
- A move above this level necessitates re-assessment of the wave structure, suggesting a possible deviation from the anticipated bearish trend.
This analysis provides a robust framework for traders to evaluate GBPUSD’s bearish momentum. By concentrating on critical levels and identifying ongoing trends, it delivers valuable insights into the sustained downward pressure as the impulsive wave sequence continues to unfold.
Technical Analyst: Malik Awais
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