The GBP/USD pair continues to follow the bearish path that we have been tracking for several weeks. As outlined in the previous Elliott Wave forecast, the price is currently moving through the final stages of green wave 5, which is part of red wave iii within the broader blue wave 3 structure. This setup suggests that the market is nearing the completion of a significant downward phase before entering a short-term corrective move.
At the moment, the price is steadily declining, confirming the bearish outlook from earlier forecasts. Based on current wave projections, we expect a short-term bottom to form around the 1.4750 area. This level is likely where red wave iii will reach its conclusion. Once this wave completes, the market is expected to start a corrective movement in red wave iv, which may push prices higher toward the 1.50 region before the next leg down begins.
This upcoming correction in red wave iv should be viewed as a temporary recovery within a broader downtrend. After the correction, a new decline is likely to unfold as red wave v begins, continuing the overall bearish structure. The next major downside target could eventually take GBP/USD closer to 1.45 or even lower if momentum remains strong.
For traders following the forecast of GBP to USD, this is an important stage to monitor. Short-term traders might look for confirmation of reversal signals near the projected 1.4750 level before considering any counter-trend positions. Medium-term traders, however, may prefer to wait for the completion of red wave iv to rejoin the downtrend at a better price level. Managing risk is essential, especially in these later stages of a wave structure where volatility can increase.
From a broader perspective, this GBP to USD prediction remains consistent with the longer-term Elliott Wave pattern, which has been pointing lower since mid-2015. The structure continues to reflect a strong dollar environment and overall weakness in the British pound.
The Elliott Wave forecast remains a valuable analytical tool for identifying where we are in the market cycle and anticipating what might come next. As GBP/USD moves through these key technical levels, traders can use the wave structure to plan their entries, exits, and risk parameters with greater confidence.
Disclaimer: This article is for educational and informational purposes only. It is not financial advice. Always conduct your own research or consult a licensed financial professional before making trading decisions.
0 Comments