FX.co ★ Elliott wave analysis of GBP/USD for January 12, 2022

Cable (GBP/USD) is ready to challenge the neckline resistance of a S/H/S bottom. This neckline is currently located near 1.4217 and a break above here will call for a continuation higher towards 1.4550 and ultimately closer to the S/H/S target at 1.6553.

Short-term we could see a temporary set-back towards 1.3462, but it should only prove temporary as a test of the neckline resistance seem set in stone.