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Elliott Wave Analysis: GBPUSD Approaching Some Reversal Regions
GBPUSD is trading higher, breaking out of the triangle correction that was found in previous wave 4. As we know, triangle corrections occur prior to the final wave, which means current blue wave 5 may see limited upside! In that case, be prepeared for a reversal in three legs, that may follow in the near-term. Ideally resistance and a turning point lower will come around the 1.304/1.306 zone.
A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
In our example we can see a running triangle, where wave b terminates above the starting point of the previous wave a.
Video analysis, where we talk about EURUSD, GBPUSD, USDCAD, USDCHF and Crude OIL
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