In the long term, GBPUSD seems to be forming a corrective cycle wave IV.
Wave IV takes the form of a triple zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. At the time of writing, the final wave Ⓩ is under development.
It is assumed that the primary wave Ⓩ will have the form of a standard zigzag (A)-(B)-(C), as shown in the chart.
It seems that the impulse (A) is built. Thus, in the near future, market participants may expect the development of a correction (B). Its completion is possible near 1.233. At that level, it will be equal to half of impulse (A).
Let’s consider an alternative scenario in which the intermediate correction (B) is already fully completed. Perhaps the market can move in an upward direction within the final intermediate wave (C).
The end of wave (C) is expected near 1.317. At the specified level, impulse waves (A) and (C) will be equal to each other.
It’s preferable to add this pair on our watchlist.
