GBPUSD is in corrective phase (multiple time frame analysis)
Hello fellas, welcome back to the technical analysis with me and this time I will do the GBP/USD technical analysis starting from daily time frame and lower time frame. we might present you the elliot wave count on this current analysis too.
We have seen the sink of GBP following the descending value of EUR . But, I see this as a cycle and it's a good cycle if we look at higher degree of the price, even if the price is in up trend moves, we need a retracement to represents the sell off and take profit action from the long to keep this market healthy.
Now look at the technical analysis here, we can see that the price has formed an action of breaking out of the blue resistance trend line that is now become a support. And based on my 3 stages strategy of break out, we must aware that after the initial break out, there should be any retest action to the previous broken support or resistance as the 2nd stage and usually this 2nd stage is the correction pattern in higher degree. This guideline has the alignment with the elliot wave count which indicate the 1st impulse wave has finished on this GBPUSD pair. And now we will look for where will the ABC correction move ended. And what the coincide is that the golden pocket zone is having a confluence with the blue resistance trend line that is now become support.
We have seen the sink of GBP following the descending value of EUR . But, I see this as a cycle and it's a good cycle if we look at higher degree of the price, even if the price is in up trend moves, we need a retracement to represents the sell off and take profit action from the long to keep this market healthy.
Now look at the technical analysis here, we can see that the price has formed an action of breaking out of the blue resistance trend line that is now become a support. And based on my 3 stages strategy of break out, we must aware that after the initial break out, there should be any retest action to the previous broken support or resistance as the 2nd stage and usually this 2nd stage is the correction pattern in higher degree. This guideline has the alignment with the elliot wave count which indicate the 1st impulse wave has finished on this GBPUSD pair. And now we will look for where will the ABC correction move ended. And what the coincide is that the golden pocket zone is having a confluence with the blue resistance trend line that is now become support.
Here is my premature count on lower time frame and based on this analysis, we can expect one more leg down to test the 1st support zone as I mentioned in the previous analysis. The early sign of reversal usually always be started with the divergence on RSI and MACD but for now, I haven't seen any sign of it yet. That's why I do believe there is still one more wave to the downside.