Sharp and extended decline seen in February
suggests that pair is trading impulsively lower from above 1.6300 high.
However, last week pair has found a bottom at 1.4830, which was expected after
five waves down in wave (3) exactly to 261.8% Fibonacci level measured of a red
wave 1). We know that after every five waves correction follows, so ideally,
pair is now in wave four pull-back towards 38.2% retracement level and to
falling trend-line connected from 2012 swing. This zone could be a nice
resistance for new sell-off on that pair, especially if we also respect 1.5270
low from 2012 that will ideally become a resistance. However, before we can
look for weaker GBP we need three waves up within current wave (4). For now we
see only one leg up in wave four counted from 1.4830 so be aware of more
strength within current corrective rally in week ahead.
GBPUSD Daily - Elliott Wave Analysis
