GBPUSD has recently broken 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 clearly identifies the right side and direction of the pair, which is higher.
The rally from the 4.22.2024 low is currently ongoing, forming a 5 waves impulse Elliott Wave structure. Wave 1 ended at 1.3045, followed by a pullback in wave 2 that terminated at 1.266. The pair has since turned higher, breaking above wave 1, suggesting that wave 3 is currently in progress.
Following the pullback from wave 2, wave (i) ended at 1.277, with dips in wave (ii) finishing at 1.272. From there, the pair extended higher, with wave i concluding at 1.287 and a pullback in wave ii ending at 1.2798. Wave iii saw the pair reach towards 1.313, followed by a wave iv pullback ending at 1.307. The final leg, wave v, concluded at 1.323, completing wave (iii).
Looking ahead, we can expect the pair to conclude wave (iv) and rally one more leg to finalize wave (v), which should complete wave ((i)). Subsequently, there may be a pullback in wave ((ii)) to correct the cycle from the 8.8.2024 low in a 3, 7, 11 swing before the rally resumes. As long as the pivot at 1.266 low remains intact, we can anticipate dips to find support in a 3, 7, 11 swing for further upside momentum.
This analysis provides a detailed insight into the GBPUSD bullish sequence, highlighting key levels and potential wave formations. The clarity and precision in identifying wave patterns and potential price movements can assist traders and investors in making informed decisions based on technical analysis. Stay tuned for updates and follow-ups on the GBPUSD pair as it continues its upward trajectory.
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