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GBPUSD Elliott Wave Forecast and Analysis

Title Image GBPUSD Elliott Wave Forecast and Analysis - 150724

Hey everyone, let's dive into the current state of the British Pound against the US Dollar. The GBP to USD forecast is a hot topic right now, and to get a clearer picture of where this pair might be headed, we're relying on a structured approach: Elliott Wave Analysis. This method helps us map out the market's movements based on recurring wave patterns, giving us a powerful elliott wave forecast for the months ahead.

Understanding the Bigger Picture

If we step back and look at the larger structure, the GBP/USD pair has been tracing out a massive correctional pattern, which we've labeled as the Blue wave (C). This whole move actually began way back in April of last year (2014) when the price peaked around the 1.7190 level.

Within this powerful Blue wave (C), we've seen several crucial steps take place. The first major downward leg, designated as Red wave [I], wrapped up on April 13, 2015, marking a short-term bottom near 1.4565. Following that, we saw a sharp correction in the opposite direction. This move, which formed the Red wave [III] of the larger Blue wave (C), appears to have been a textbook zigzag correction, eventually topping out at 1.5670.

The Current Elliott Wave Forecast

So, where are we now? The market seems to have turned definitively lower and is currently tracing out a smaller internal wave, specifically Blue wave 1 of the larger Red wave [III] move.

This is the key to our immediate gbp to usd forecast. Based on the technical structure provided by our elliott wave analysis, we anticipate a significant continuation of the downside pressure. The ideal target for this current Blue wave 1 points distinctly towards the 1.24 to 1.25 region. Given the momentum and the established wave count, we shouldn't rule out the possibility of the pair even moving to lower levels in the coming month.

In short, the waves are screaming for a continued decline. Keep a close watch on key support levels as the pair makes its descent towards that 1.25 target area. We'll be updating this elliott wave forecast as the structure unfolds. Trade smart and stay sharp!

Trading Wisdom of the Day

"Think in percentages, not in profits."

Crucial Risk Management Advice

Crucial Advice: Effective trading is based on disciplined risk management, not prediction certainty. Always use a firm stop-loss to protect your capital. Macroeconomic news, particularly from the Federal Reserve or the European Central Bank, can override any technical pattern instantly.

Profile Image of Ghulam Muhiuddin, Certified Technical Market Analyst, 18 Years of consistent market analysis and forecasting</strong>

About the Author

Experience: This analysis reflects the insights gained from 18 Years of consistent market analysis and forecasting, specializing in the application of the Elliott Wave Principle and advanced technical structures.