GBP/USD Elliott Wave technical analysis
Function: Counter Trend.
Mode: Corrective.
Structure: Orange Wave 2.
Position: Navy Blue Wave 3.
Direction Next Higher Degrees: Orange Wave 3.
Details: Orange Wave 1 completed, Orange Wave 2 in play.
Wave cancel invalid level: 1.26113.
The GBPUSD Elliott Wave Analysis on the daily chart examines the British Pound to U.S. Dollar currency pair using Elliott Wave Theory. This analysis focuses on identifying and interpreting market movements within a counter trend. The mode of the analysis is corrective, indicating that the current wave pattern represents a correction within the larger trend.
The specific wave structure under observation is Orange Wave 2, signifying that the market is in the second wave of an overall corrective pattern. Within this structure, the position is Navy Blue Wave 3, indicating that the currency pair is in the third wave of a smaller degree within the Orange Wave 2.
The analysis anticipates the next higher degree direction to be Orange Wave 3. After the completion of Orange Wave 2, a new impulsive phase, Orange Wave 3, is expected to commence, likely leading to a resumption of the broader trend.
Details provided in the analysis highlight that Orange Wave 1 appears to be completed, and the market is currently progressing through Orange Wave 2. This suggests that the market is undergoing a corrective phase after the completion of the first wave. The current focus is on the development and completion of Orange Wave 2 before transitioning into Orange Wave 3.
A critical aspect of this analysis is the wave cancellation invalid level, set at 1.26113. This level serves as a threshold to validate or invalidate the current wave analysis. If the market price surpasses this level, it would invalidate the current wave analysis, requiring a reassessment of the wave structure. This invalidation level is essential for maintaining the accuracy of the wave analysis and ensuring effective risk management.
In summary, the GBPUSD daily chart analysis identifies the market within a corrective counter trend, focusing on the development of Orange Wave 2 within Navy Blue Wave 3. The analysis suggests that Orange Wave 1 is completed, and the market is now in Orange Wave 2. The next anticipated phase is Orange Wave 3. The wave cancellation invalid level at 1.26113 is crucial for validating the current wave count and maintaining risk management.
GBP/USD Elliott Wave analysis: Day chart
GBP/USD Elliott Wave analysis: Four-hour chart
Function: Counter Trend.
Mode: Corrective.
Structure: Orange Wave 2.
Position: Navy Blue Wave 3.
Direction next higher degrees: Orange Wave 3.
Details: Orange Wave 1 completed, Orange Wave 2 in play.
Wave cancel invalid level: 1.26113.
The GBPUSD Elliott Wave Analysis on the 4-hour chart examines the British Pound to U.S. Dollar currency pair using Elliott Wave Theory. This analysis aims to identify and interpret market movements within a counter trend. The mode of the analysis is corrective, indicating that the current wave pattern is a correction within the broader trend.
The specific wave structure under observation is Orange Wave 2. This indicates that the market is currently in the second wave of an overall corrective pattern. Within this structure, the position is Navy Blue Wave 3, suggesting that the currency pair is in the third wave of a smaller degree within the Orange Wave 2.
The analysis anticipates the next higher degree direction to be Orange Wave 3. After the completion of Orange Wave 2, a new impulsive phase, Orange Wave 3, is expected to commence. This would likely lead to a resumption of the broader trend.
Details provided in the analysis highlight that Orange Wave 1 appears to be completed, and the market is currently progressing through Orange Wave 2. This suggests that the market is undergoing a corrective phase after the completion of the first wave. The current focus is on the development and completion of Orange Wave 2 before transitioning into Orange Wave 3.
A critical component of this analysis is the wave cancel invalid level, set at 1.26113. This level serves as a threshold to validate or invalidate the current wave count. If the market price surpasses this level, it would invalidate the current wave analysis, requiring a reassessment of the wave structure. This invalidation level is essential for maintaining the accuracy of the wave analysis and ensuring effective risk management.
In summary, the GBPUSD 4-hour chart analysis identifies the market within a corrective counter trend, focusing on the development of Orange Wave 2 within Navy Blue Wave 3. The analysis suggests that Orange Wave 1 is completed, and the market is now in Orange Wave 2. The next anticipated phase is Orange Wave 3. The wave cancellation invalid level at 1.26113 is crucial for validating the current wave count and maintaining risk management.
GBP/USD Elliott Wave technical analysis [Video]
As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.
Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.