Elliott Wave Analysis: Further Downside Expected in GBPUSD

Short term Elliott Wave view in GBPUSD shows that rally to 1.2816 ended blue wave (4). Internal of that rally unfolded as a triple three Elliott Wave structure. Red wave W ended at 1..2687, red wave X ended at 1.2528, red wave Y ended at 1.2739, second red wave X ended at 1.2614, and red wave Z ended a 1.2816. Decline from there ended at 1.2437 in black wave ((a)) as a 5 waves impulsive Elliott Wave structure.

Down from 1.2816, blue wave (i) ended at 1.2717, blue wave (ii) ended at 1.2773, blue wave (iii) ended at 1.258, blue wave (iv) ended at 1.2616, and blue wave (v) of black wave ((a)) ended at 1.2437.

Near term, pair correct decline from 12/31 high (1.2816) within black wave ((b)) in 3, 7, or 11 swing before the decline resumes. First area will be the equal legs from 01/02/19 low towards 1.2660-1.2736 where black wave ((b)) bounce can end.

We don’t like buying the pair with the right side tag showing lower and expect sellers to appear and pair to extend lower as far as pivot at 1.2816 stays intact.