GBPUSD Structure Hints at Further Upside

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GBPUSD seems to be forming a triangle wave e, the last leg of the formation. The correction wave consists of primary sub-waves Ⓐ-Ⓑ-Ⓒ.

Wave Ⓐ is a 5-wave impulse, and wave Ⓑ resembles a double zigzag.

Currently, prices are structuring a bullish impulse in wave Ⓒ of the intermediate degree (1)-(2)-(3)-(4)-(5).

Wave (2) seems complete at the time of writing. This is a signal for a bullish move in wave (3).

We could see the completion of the entire primary wave Ⓒ near the 1.3012 area. At that level, wave Ⓒ  will be at the 76.4% Fibonacci extension of wave Ⓐ.

gbpusd

It is worth considering an alternative scenario. According to this view, the zigzag in wave Ⓑ isn’t yet completed.

In that case, the intermediate degree correction could turn out to be a triple zigzag (W)-(X)-(Y)-(X)-(Z).

In the short term, we could see prices decline in the final intermediate wave (Z) near 1.1888. At that level, the correction wave Ⓑ will be at the 61.8% of impulse Ⓐ.

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