GBP/USD Archives - Page 2 of 2 - Elliott Wave Forecast

GBPUSD : Spotting and Trading Confluence Zones

June 15, 2020 By EWF Aidan

The GPBUSD pair last week formed a temporary top and reversed lower. Towards the end of the trading week GBPUSD made lower lows and lower highs signalling the pair was in a downside trend. Traders use confluence zones to catch possible trade setups. Confluence zones are when 2 or more trading techniques/strategies come together and form a high probability BUY/SELL zone. Traders can spot confluence zones on any time frame. The charts below will show visible signals calling for the GBPUSD pair to push lower.

GBPUSD 1 Hour Chart June 12 2020

On the 1 hour chart a bearish trend reversal divergence pattern (orange) formed. Price reacted with a move lower June 10 2020 which then started a lower low lower high sequence. Price also broke the higher high higher low sequence which added more confirmation for a trader to look for more downside price action. The confluence zone was spotted when price hit the static support/resistance level (green), the 50 moving average dynamic support/resistance (blue) and the 0.382% Fib retracement level (pink) which all converged in the same area. A bearish trend continuation divergence pattern (orange) also formed in the same area which added more confidence the pair would push lower. When a high probability trade setup is spotted a trader should switch to a smaller time frame to time the entry.

GBPUSD 15 Minute Chart June 12 2020

When scaling down to the 15 minute time frame the chart also showed a similar confluence zone. The static resistance level (green), 200 moving average dynamic resistance (blue), and a Fibonacci cluster 0.382% Fib. retracement level (pink) and 0.618% Fib. retracement level (light blue) formed the confluence zone. A bearish trend continuation divergence pattern (orange) was also visible on the 15 minute time frame in the same confluence zone. SELL trade was triggered when the momentum indicator broke below the 100 level with stops above the most recent high. GBPUSD pushed lower and hit the 1:4 RR target.

Of course, like any strategy/technique, there will be times when the strategy or technique fails so proper money risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan

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GBPUSD Incomplete Bearish Sequences Calling The Decline

February 24, 2020 By EWF Vlada

Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of GBPUSD, published in members area of the website. As our members know GBPUSD has incomplete bearish sequences in the cycle from the 12/13 peak. The pair is targeting 1.2668 area ideally . Consequently, we advised members to avoid buying the pair and keep on favoring the short side. In further text we’re going to explain Elliott Wave Forecast.

GBPUSD 1 Hour Elliott Wave Analysis 2.17.2020

The cycle from the December 13th peak looks incomplete, calling for further decline in the pair. The pair is bearish against the 1.1172 pivot in the first degree. Wave 4 bounce looks completed at the 1.3069 high as Elliott Wave Zig Zag pattern. Now, we would like to see further separation from that high and ideally break below 02/10 low to confirm next leg down is in progress.

You can learn more about Elliott Wave Zig Zag Patterns at our Free Elliott Wave Educational Web Page.

GBPUSD 1 Hour Elliott Wave Analysis 2.20.2020

Eventually , GBPUSD gave us decline and made separation from the 1.3069 high. However 02/10 still needs to get broken in order to confirm further weakness in the pair. Next technical area to the downside comes at the marked blue box :1.2865-1.2815. At that zone intraday sellers should be ideally taking profits, which will allow the pair to make short term bounce.

GBPUSD 1 Hour Elliott Wave Analysis 2.24.2020

GBPUSD has finally broken 02/10 low. Decline reached blue box area at 1.2865-1.2815 and we got short term bounce as expected. At this stage short term bounce ((b)) looks completed at the 1.2982 high and next leg down can be in progress.

Keep in mind turning Black arrows shows the path we prefer , but highest probability path is not the same as highest probability trade which is why we focus on green / red right side tags or bullish / bearish sequence combined with blue boxes to trade.

GBPUSD 1 Hour Elliott Wave Analysis 2.2.2020

The pair broke 1.2982 high and took alternatively path. Current view suggests wave 4 red recovery is still in progress. Now the price is showing 5 swings up from the lows, calling potentially for more short term strength toward 1.3032-1.3103. At that zone sellers should appear ideally for 3 waves pull back at least. Proposed extension up is not guaranteed and buying the pair against the main bearish trend is not recommended.

Keep in mind Market is dynamic and presented view could have changed in the mean time. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room.

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Elliott Wave View: GBPUSD Impulsive Decline Suggests More Downside

December 20, 2019 By EWFHendra

Short Term Elliott Wave view in GBPUSD suggests that the rally to 1.3516 ended wave ((A)). This rally ended cycle from 9.3.2019 low as a 5 waves impulsive Elliott Wave structure. Pair is now correcting cycle from 9.3.2019 low within wave ((B)) as a zigzag Elliott Wave structure. A zigzag is a 3 waves structure with ABC label and subdivision of 5-3-5. The first leg wave A subdivides as a 5 waves impulse. Down from 1.3516, wave ((i)) ended at 1.3304 and wave ((ii)) bounce ended at 1.342. Pair then extended lower in wave ((iii)) towards 1.307 and wave ((iv)) bounce ended at 1.313.

Wave ((v)) is expected to end soon and this should complete wave A of ((B)). Afterwards, pair should bounce in wave B to correct cycle from 12/13/2019 high in 3, 7, or 11 swing before the decline resumes. We don’t like buying the proposed bounce and expect sellers to appear in the sequence of 3, 7, or 11 swing as far as pivot at 1.3516 stays intact. Potential target for wave ((B)) is 50 – 61.8% Fibonacci retracement of the rally from 9.3.2019 low which comes at 1.232 – 1.273.