Executive Summary
- GBPUSD continues 3rd wave rally
- The August 8 low of 1.2665 is the bullish count’s key level
- Near-term bullish targets are 1.36-1.41 unless the alternate count is activated below 1.2665
GBPUSD Highest Price in 2 Years
GBPUSD reached its highest level in over two years pushing above 1.3200 today.
12 of the past 14 days have been bullish days for Cable. This behaviour is common for an asset in a 3rd wave of an impulsive pattern.
Back on July 10, we forecasted the beginning of a 3rd wave that would be a strong rally. We stated:
“This anticipated wave (iii) rally could carry up to 1.36-1.41 while holding above 1.2612.” – GBPUSD Elliott Wave: Beginning of 3rd Wave (July 10)
Currently, GBPUSD is on path to reach the 1.36-1.41 target. The previously stated targets and forecast remains valid under the wave count noted above.
1.36-1.41 is simply a near-term zone to target and the market may offer a little reaction there. Even higher levels above 1.41 are still in focus as Cable is rallying in a 3rd wave at multiple degrees of trend. The next level target would be 1.48-1.52.
What Is the Current Elliott Wave Pattern for GBPUSD?
We are considering the current Elliott wave for GBP/USD to be wave (iii) of ((iii)).
The August 8 low at 1.2665 is considered the end of wave (ii). This means since August 8, GBPUSD has been working higher in the beginning stages of wave (iii), generally one of the strongest waves in the Elliott wave sequence.
Bottom Line
Conservative targets for wave (iii) rally remain in the 1.36-1.41 while holding above 1.2665. The next level of targets are 1.48-1.52.
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