Elliott Wave Analysis of the GBP/USD Currency Pair by Sid from ElliottWavePredictions.com. Click on the charts twice to enlarge.
Since my last free post about the British Pound on January 10, when the pair was at 1.6166 and I suggested that a very sizeable move to the downside was imminent, Cable has moved southward by over 1300 pips.
More recently, since the March 12 low, the pair has been in an upward correction. It appears that GBP/USD may be in the final stages of finishing an upward 5-3-5 zigzag, with wave C pink likely in the final stages of finishing an ending diagonal. If this interpretation is correct, Cable will rally to challenge the upper diagonal trendline extending from the extremes of waves 1 and 3 green. Ending diagonals can truncate, but typically will “throw-over” that line slightly. Since the diagonal is contracting, wave 5 green cannot be longer than wave 3 green was, leaving a maximum for wave 5 green at 1.52447.
Despite the brevity of the proposed correction, considering the longer term count that the Pound is in a thrust out of a 4-year-long triangle, this could mark the end of wave 2 blue, and the resumption of an even more aggressive section of the proposed 3700+ pip crash, the wave 3 of 3.