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Tuesday, May 13, 2014

Elliott wave analysis of GBP/USD - Top in place?

GBP/USD - Top in place?
 
We can count five waves since the 1.4809 low in July 2013. Even though I must say, that the last rally from 1.6461 leaves a lot to desire in term of being impulsive (maybe it's just part of an expanded flat correction?). No matter what it is, if support at 1.6822 and more importantly support at 1.6758 is broken we should look for downside pressure.

A break below support at 1.6822 will trigger a possible minor S/H/S top (see the 4 hourly chart below), which target is well below the critical level at 1.6758 and a break below here should at least call for a return to 1.6461. Even if we "only" are looking at an expanded flat correction the coming wave C should decline to 1.6287.

Keep an eye on the 1.6822 and 1.6758 supports for clues of a possible decline in Cable.


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2 comments:

  1. HaiGoMay 13, 2014 at 8:59 AM

    Hi EWS,
    I'm confused, I thought the LT target was at least 1.83ish?
    Thanks,
    HaiGo

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    1. Elliott wave surferMay 14, 2014 at 10:14 AM

      Hi HaiGo,

      I still think we are going to see GBP/USD higher longer term, but nothing goes in a straight line. So what I'm looking for is a correction of the rally from early July 2013 to the present top, but when this correction is over I will be looking for more upside towards 1,83 and maybe even higher.

      Kind regards
      EWS

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