Since August 2015, the GBP/USD pair has been moving in a steady downtrend that started around the 1.58 level. According to our Elliott Wave forecast, the market completed red wave II’ at 1.5811, and since then, the price has continued its decline, forming blue wave v of gray wave 3, which itself is part of red wave iii of blue wave 3 within the broader red wave III’ structure.
This complex Elliott Wave pattern shows that the market is still in a bearish phase. The current move, identified as blue wave v, is expected to push lower toward the 1.49 area. Around this level, we anticipate a temporary correction in gray wave 4, which could lift the pair back toward the 1.5250 to 1.5300 zone before the broader downtrend resumes.
Once this short-term correction is complete, the bearish momentum may continue, potentially driving GBP/USD toward 1.45 and even 1.40 in the longer term. Traders following the forecast of GBP to USD may consider short positions near current levels or on minor rallies, targeting the 1.4250 area, while keeping proper risk management in place.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research before making trading decisions.
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