GBP/USD Elliott Wave Analysis: Still Bearish While Below 1.2438
Elliott Wave Forecast | Jan 13, 2017 12:53AM ET
GBP/USD is showing a 5 swing bearish sequence from 12/6 peak (1.277) which favors more downside. The decline from 12/6 peak is unfolding as a double three where wave (W) ended at 1.2198 and wave (X) ended at 1.2432. GBP/USD has since broken below wave (W) at 1.2198 which suggests that the next leg Wave (Y) has already started to the downside. Internal of wave (Y) is unfolding as a double three where wave W ended at 1.2037 and wave X bounce is proposed complete at 1.2317. Near term, while bounces stay below there, expect pair to resume lower towards 1.172 – 1.185 area. If pair breaks above 1.2317, then pair should open extension higher as a double three from 1/11 low and can reach 1.24 area before at least a 3 waves pullback.
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