Short-term Elliott wave view in GBPUSD suggests that October 20, 2021, high is showing a lower low sequence favoring more downside to take place. Down from that peak, the decline is unfolding as an Elliott wave impulse sequence where wave 1 ended at $1.3735 low. While wave 2 ended at a $1.3830 high. Wave 3 unfolded in a lesser degree 5 waves structure where wave ((i)) ended at $1.3708 low, wave ((ii)) ended at $1.3815 high & wave ((iii)) ended at $1.3423 low. Afterwards, wave ((iv)) ended at $1.3607 high and wave ((v)) ended at $1.3351 low.
Above from there, the stock is doing a bounce in wave 4 to correct the cycle from 26 October 2021 high. The internals of that bounce is unfolding as Elliott wave double three structure where wave ((w)) ended at $1.3473 high. Then wave ((x)) pullback ended at $1.3394 low and wave ((y)) is expected to reach 100%-161.8% Fibonacci extension area of ((w))-((x)) towards the blue box area at $1.3517- $1.3593. Near-term, as far as the pair stays below the $1.3593 level the pair should find sellers looking for more downside ideally or for a 3 wave reaction lower at least.
GBPUSD 1 Hour Elliott Wave Chart
