GBP/USD Elliott Wave technical analysis [Video]

Peter Mathers TradingLounge

GBP/USD Elliott Wave technical analysis

Function: Bearish Trend.
Mode: Impulsive.
Structure: Navy blue wave 1.
Position: Gray wave 1.
Direction next higher degrees: Navy blue wave 2.
Details: Navy blue wave 1 remains active.
Wave cancel invalid level: 1.34351

The Elliott Wave analysis for the GBPUSD daily chart from Trading Lounge highlights a bearish trend in the currency pair, driven by an impulsive wave structure. The current analysis identifies navy blue wave 1 as ongoing, signaling a continuation of the downward momentum within the broader bearish framework.

Currently positioned in gray wave 1, this impulsive movement suggests further price declines as the wave structure develops. The unfolding of navy blue wave 1 underscores the likelihood of sustained bearish pressure on GBPUSD, consistent with the broader trend direction.

The impulsive nature of the wave structure indicates strong, directional moves, supporting expectations for additional downside. An invalidation level is set at 1.34351, representing a crucial point in the analysis. A price movement to or above this level would invalidate the current wave structure, signaling a potential reversal or the start of a corrective phase. Such an event would prompt a re-evaluation of the Elliott Wave analysis.

Summary

This analysis reinforces a bearish perspective for GBPUSD as navy blue wave 1 progresses within the impulsive structure of gray wave 1. Traders should closely monitor price action near the invalidation level of 1.34351. A break above this threshold may indicate a reversal or necessitate a reassessment of the wave structure, deviating from the current bearish trend outlook.

GBP/USD Elliott Wave technical analysis

Function: Bearish Trend.
Mode: Impulsive.
Structure: Orange wave 5.
Position: Navy blue wave 1.
Direction next higher degrees: Navy blue wave 2.
Details: Orange wave 4 appears completed. Orange wave 5 of navy blue wave 1 is active.
Wave cancel invalid level: 1.30099.

The GBPUSD Elliott Wave analysis for the 4-hour chart from Trading Lounge identifies a bearish trend in the currency pair, marked by an impulsive wave pattern. Orange wave 5 is currently unfolding as part of the larger navy blue wave 1, signaling continued downward movement.

Following the apparent completion of orange wave 4, orange wave 5 has commenced within the impulsive framework of navy blue wave 1. Typically, wave 5 represents the final phase of an impulsive trend, reinforcing the bearish momentum and increasing the probability of further downside in GBPUSD.

The analysis highlights a critical invalidation level at 1.30099. If the price moves to or above this point, the current wave structure would be invalidated, indicating a potential trend reversal or the start of a corrective phase. This invalidation level is a vital reference for confirming the bearish trend. A breach of this level could challenge the current analysis, necessitating a reassessment of the wave structure.

Summary

This analysis supports a bearish outlook for GBPUSD, driven by orange wave 5 within navy blue wave 1. Traders should closely monitor price movements near the invalidation level at 1.30099. Any rise above this threshold may suggest a reversal or a shift in the wave structure, impacting the overall bearish trend projection.

GBP/USD Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.