Forex Trading Library

GBPUSD Double Zigzag To End Near 1.143

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The GBPUSD structure suggests the formation of a global corrective triple zigzag w-x-y-x-z. On the 1H timeframe, we see the final actionary wave z of the cycle degree.

The wave z most likely takes the form of a primary triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. At the end of May, the bullish price movement within the primary intervening wave Ⓧ ended. This took the form of an intermediate double zigzag (W)-(X)-(Y).

It is likely that in the near future the bearish trend will continue in the primary wave Ⓩ. This could complete its intermediate double zigzag (W)-(X)-(Y) pattern near the 1.143 mark. The intermediate wave (W) can also take the form of a double zigzag W-X-Y.

At that level, wave Ⓩ will be at the 76.4% Fibonacci extension of previous activonary wave Ⓨ.

According to an alternative scenario, the formation of the primary intervening wave Ⓧ has not yet ended.

Thus, in the upcoming trading days, a price increase and the development of a bullish intervening wave Ⓧ is likely.

Wave Ⓧ will take the form of a zigzag (A)-(B)-(C) of the intermediate degree. Its end is likely near 1.276. At that level, wave Ⓧ will be at 50% of wave Ⓨ. The probability of achieving this coefficient is high.

After reaching the level of 1.263, prices could turn around and continue its downward movement in the primary wave Ⓩ.

Test your strategy on how the GBP will fare! Open your Orbex Account and start trading now. 

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