GBPUSD Elliott Wave Analysis Trading Lounge Day Chart,
British Pound/U.S. Dollar (GBPUSD) Day Chart.
GBP/USD Elliott Wave technical analysis
Function: Trend.
Mode: Impulsive.
Structure: Gray wave 1.
Position: Orange wave 3.
Direction next lower degrees: Gray wave 2.
Details: Orange wave 2 of 3 seems completed; now gray wave 1 of 3 is active.
The GBPUSD daily chart analysis shows that the British Pound to US Dollar currency pair is currently trending in an impulsive manner. The market follows an impulsive wave structure, indicating a strong directional movement consistent with the prevailing trend. The specific structure under analysis is gray wave 1, part of a larger wave sequence.
At this stage, the market is positioned in orange wave 3, which represents a crucial phase in the ongoing wave cycle. After the completion of orange wave 2 of 3, gray wave 1 of 3 has begun. This indicates that the market is progressing through the early stage of this wave, which typically results in significant price movements.
The analysis further suggests that orange wave 2 of 3 has likely completed. This marks the transition to the next phase, with gray wave 1 of 3 now unfolding. This implies the market is expected to continue moving upward in line with the current impulsive wave structure.
In summary, the GBPUSD pair remains in an impulsive trend, with gray wave 1 of 3 now unfolding. The completion of orange wave 2 of 3 signals the market's transition into gray wave 1 of 3, indicating sustained momentum within the current trend. This wave analysis offers valuable insights for traders, suggesting that the next wave cycle may involve continued upward movement.
British Pound/U.S. Dollar (GBPUSD) 4-Hour Chart
GBP/USD Elliott Wave technical analysis
Function: Trend.
Mode: Impulsive.
Structure: Micro navy blue wave 5.
Position: Gray wave 1.
Direction next lower degrees: Gray wave 2.
Details: Micro navy blue wave 4 of 1 seems completed, now micro navy blue wave 5 of 1 is active.
The GBPUSD 4-hour chart analysis suggests that the British Pound to US Dollar currency pair is currently in a trending mode. The market is following an impulsive wave structure, indicating strong momentum in line with the current trend. The structure being tracked is micro navy blue wave 5, which forms part of a larger wave movement.
At the moment, the GBPUSD pair is positioned in gray wave 1, indicating the early stage of a broader wave cycle. The next lower-degree wave is gray wave 2, expected to follow the completion of the current wave.
An important detail in this analysis is that micro navy blue wave 4 of 1 appears to have completed. Now, the market is unfolding micro navy blue wave 5 of 1. This phase typically represents the final movement in the current impulse wave sequence, leading to the completion of the overall wave 1 cycle.
In summary, the GBPUSD pair is currently experiencing an impulsive trend, with micro navy blue wave 5 of 1 in progress. The completion of micro navy blue wave 4 indicates that the market is in the final phase of this impulsive sequence, with gray wave 2 expected to follow. This analysis provides insight into the ongoing wave structure and the potential transition into the next phase. Traders should closely monitor the behavior of wave 5 and prepare for the possible shift into wave 2.
Technical analyst: Malik Awais.
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
AUD/USD holds steady near 0.6250 ahead of RBA Minutes
The AUD/USD pair trades on a flat note around 0.6250 during the early Asian session on Monday. Traders brace for the Reserve Bank of Australia Minutes released on Tuesday for some insight into the interest rate outlook.
USD/JPY consolidates around 156.50 area; bullish bias remains
USD/JPY holds steady around the mid-156.00s at the start of a new week and for now, seems to have stalled a modest pullback from the 158.00 neighborhood, or over a five-month top touched on Friday. Doubts over when the BoJ could hike rates again and a positive risk tone undermine the safe-haven JPY.
Gold price bulls seem non-committed around $2,620 amid mixed cues
Gold price struggles to capitalize on last week's goodish bounce from a one-month low and oscillates in a range during the Asian session on Monday. Geopolitical risks and trade war fears support the safe-haven XAU/USD. Meanwhile, the Fed's hawkish shift acts as a tailwind for the elevated US bond yields and a bullish USD, capping the non-yielding yellow metal.
Week ahead: No festive cheer for the markets after hawkish Fed
US and Japanese data in focus as markets wind down for Christmas. Gold and stocks bruised by Fed, but can the US dollar extend its gains? Risk of volatility amid thin trading and Treasury auctions.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
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.