GBPUSD: 1.31 Round Level Could Complete 5-Wave Impulse

0 161

GBPUSD seems to be forming a corrective cycle XX, which can be seen as a zigzag and consists of primary sub-waves  Ⓐ-Ⓑ-Ⓒ.

A fresh 5-wave bullish impulse Ⓒ could be underway.

Following the completion of the intermediate correction wave (4), bulls could continue pushing upwards towards the 1.31 round level.

gbpusd

A closer look at the 1H timeframe indicates that intermediate wave (4) consists of minor waves W, X, Y, where wave Y has taken the form of a standard bearish zigzag.

In the short term, we could see a decline near 1.2775 to complete the zigzag in minor Y. That level would mark prices lower as part of the 2X Fibonacci extension of minute waves ⓐ and ⓑ.

It also happens to be the 200% Fibonacci extension of minuette waves (i) and (ii), and that makes it a strong absorption/confluence level.

gbpusd 4h

START TRADING

or practice on DEMO ACCOUNT

Trading CFDs Involves high risk of loss

Leave A Reply

Your email address will not be published.