The GBPUSD pair recently broke above the previous peak on 7.14.2023 high at 1.3143, indicating a higher high bullish sequence from the 9.26.2022 low. This breakout confirms the upward trend of the pair, leaving no doubt about its direction. The rally from the 4.22.2024 low is currently unfolding as a 5-wave impulse Elliott Wave structure.
Identifying Key Waves and Levels
In the near term, after wave 1 ended at 1.3045 and wave 2 pullback concluded at 1.266, the pair turned higher and surpassed the wave 1 high, suggesting that wave 3 is now in progress. The subsequent waves (i) and (ii) also played out, with the pair extending higher towards wave iii levels at 1.313. This final leg marked the completion of wave (iii).
Forecasting Future Price Action
Moving forward, the pair is expected to complete wave (iv) before embarking on one more leg up to finish wave (v). This should finalize wave ((i)). Following this, a corrective wave ((ii)) will likely take place, correcting the cycle from the 8.8.2024 low in a 3, 7, 11 swing pattern. As long as the pivot at 1.266 low remains intact, any short-term dips are anticipated to find support within the 3, 7, 11 swing, paving the way for further upside potential.
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