GBP/USD, H4 chart:


Today, let’s consider the current situation of the pound/dollar pair.

The formation of the initial part of a new bearish trend was observed on the last section of the H4 time frame. Until today, the market has successfully formed two small sub-waves: [1] and [2], which signals the beginning of a downward impulse wave. It is worth noting that wave [1] is an impulse, while wave [2] is a bullish double zigzag.

At the moment, the third wave is developing. Following the end of a small wave (1) in the form of an impulse, prices started to make a correction in wave (2). Now, let’s closely take a look at the details of this area in the hourly (H1) time frame.

GBPUSD, H1 chart:


A fully completed downward wave (1), which consists of sub-waves 1-2-3-4-5, can be seen in this chart. After its end, the price started to make an upward movement.

Apparently, the market was already done forming the first two parts of the correction (2), which can take a simple A-B-C zigzag form. In particular, we are talking about waves A and B, impulse and zigzag correction.

Given that we have the right assumption and the bearish correction B is fully done with its pattern, the currency pair will most likely increase in the near future within the final impulse wave C. It is possible that wave C will end its correction (2) around the 1.3920 mark.

At this level, the value of wave (2) will be 76.4% along the Fibonacci lines of wave (1). There is a high probability that the indicated ratio will be achieved.

The material has been provided by InstaForex Company –

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.