GBP/USD Now Below 2009 Trend-line; Sharp Fall To Come?
Gregor Horvat | Feb 18, 2013 03:41AM ET
A decline from 2008 peak to 2009. The 1.3500 low was in five waves, which in Elliott Wave theory indicates a direction of a larger trend. This is called an impulse wave, and once this leg is complete, you will see a reversal in price against the trend, normally into a slow, choppy and overlapping price action which is the personality of a correction. Well, this is exactly what has market experienced since the 2009 lows. As such, we are very confident that the GBP/USD pair made a corrective pattern in wave (B) position, which is called a triangle. In fact, this triangle could already be in place as the current price closed below rising trend-line connected from the 2009 low.
However, we still want to see a break of wave D) 1.5267 low that will confirm the bearish view for wave (C) fall towards 1.3000.
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