FX.co ★ Short-term Elliott wave analysis on GBPUSD

GBPUSD is following our expected wave path for a move below 1.29 after bouncing towards 1.3250. Price has so far moved exactly as we predicted and this increases our hopes that a bigger reversal should follow,as this remains our key scenario for the first quarter. Price is following our analysis from December 17th.

GBPUSD is trading around 1.2990 and is in bearish trend. Price is making lower lows and lower highs. Support is at the 38% Fibonacci retracement level where it bottomed on December 23rd. If this support fails to hold we should see price move towards the 61.8% Fibonacci retracement. As we said when price was trading around 1.3260, we expect a move below 1.29 at minimum. Ideal wave C down should complete around the 1.26-1.25 area. Resistance is at 1.3215 and as long as we trade below it, we remain bearish.