GBP/USD completed a five-wave recovery from March lows, and started trading sideways. We labelled a W-X-Y complex correction from 1.265 high, which based on latest developments looks completed at the 1.207 level. If that is the case, then we may see a five-wave rally into a higher degree wave C in the next couple of days or weeks. Also, we would like to see the upper channel line broken, which would confirm a completed correction, and further upside.

Any decling within recovery can be part of a correction within a wave C. At the moment we see sub-wave 2 in play, with support at 1.216/1.213 zone.

 

GBP/USD, 4h

GBPUSD

 


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