The current GBPUSD formation hints at a triple zigzag pattern. It consists of five primary waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
At the time of writing, we see the development of a simple zigzag in wave Ⓩ. Intermediate sub-waves (A) and (B) are complete, whereas impulse (C) is under construction.
In the short term, we can expect minor wave 5 to end near the 1.344 area. At that level, wave Ⓩ will be at 161.8% of wave Ⓨ.
An alternative scenario indicates that cycle wave e is taking a standard zigzag Ⓐ-Ⓑ-Ⓒ formation.
Waves Ⓐ and Ⓒ are 5-wave impulses, whereas wave Ⓑ is a flat correction.
In the short-term, we can expect prices to extend higher in wave Ⓒ. With intermediate sub-waves (1) and (2) complete, the impulse is expected to reach 1.419.
At that level, wave Ⓒ will be at 161.8% of wave Ⓐ.