GBPUSD: Should We Expect a Deeper Correction?

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The current GBPUSD structure shows a bullish impulse in cycle wave c. The corrective leg consists of primary sub-waves ①-②-③-④-⑤.

It is likely that waves ① and ② are fully completed. Wave ① as an impulse and wave ② as a bearish zigzag.

If the intermediate degree pattern is indeed completed at 1.2254, we expect wave ③ to appreciate near the 1.350 region or higher.

The target would respect the tenancy of impulse waves one and three being at least equal.

gbpusdIn case primary wave ① turns out to be a corrective wave Ⓐ, we can expect the zigzag in wave Ⓑ to end lower.

In that case, however, the intermediate degree correction could be a double zigzag (W)-(X)-(Y).

This scenario suggests that the intermediate wave (W) is completed and the intervening wave (X) is under development.

Thus, followed by a short-term upside move, the pair could continue to move down near the 1.188 area. At that level, the primary wave Ⓑ   will be at 61.8% of the primary wave Ⓐ.

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