Thursday, June 23, 2016

Elliott wave analysis of GBP/USD - To move lower no matter what today's outcome will be






GBP/USD - To move lower no matter what today's outcome will be 

The potential upside should be limited from here. Wave iv could already be in place with the 1.4844 high or we might see a move slightly higher to the equality target at 1.4944 from where a turn lower is expected. 

The rally of the late February 2016 low at 1.3834 is seen a corrective and this impulsive rally from 1.4010 should complete this correction and turn prices lower again in wave v. 

The ideal target for wave v is seen at 1.3344, but GBP/USD has a habit of extending its fifth wave, so the potential downside could be deeper. 

No matter, which way today's vote goes a decline should be seen soon. The top will be confirmed by a break below minor support at 1.4641

This also fits my preferred long term view well (you can see the long term view by clicking here). 

Only a failure to break below the 1.3834 low followed by a new impulsive rally calls for the alternate count (see the long term view).  




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