Short term Elliott Wave view in GBPUSD suggests the decline from 5/27/2022 peak is unfolding as a 5 waves impulse Elliott Wave structure. Down from 5/27/2022 peak, wave 1 ended at 1.1932 and rally in wave 2 ended at 1.2407. Pair then resumes lower in wave 3 which ended at 1.1758 as the 1 hour chart below shows. Wave 4 is currently in progress to correct cycle from 6/17/2022 peak before the decline resumes.
Internal of wave 4 is proposed to be taking the form of a double three Elliott Wave structure. A double three is a 7 swing structure or sometimes also called a double zigzag. It’s a complex correction where two zigzags are joined together. Up from wave 3, wave (a) ended at 1.1875, and pullback in wave (b) ended at 1.184. Pair then resumed higher in wave (c) which ended at 1.2034. This is the first zigzag and ended wave ((w)) in larger degree. Pullback in wave ((x)) is in progress now in 3, 7, or 11 swing and while the dips stay above 1.1758, pair can then see another leg higher in wave ((y)) as the second zigzag. Potential target for wave ((y)) can be measured later once wave ((x)) is fully formed as 100% – 161.8% Fibonacci extension of wave ((w)), projected from wave ((x)) low.
