Executive Summary
- GBPUSD continues its wave 3 advance
- Current wave is (iv) of ((i)) of 3.
- Targets for ((i)) of 3 include 1.33.
Current GBPUSD Elliott Wave Count
The current Elliott wave count for GBPUSD on the daily price chart is wave (iv) of ((i)) of 3. This wave count implies the rally for Cable is just getting started as it nears the end of wave ((i)).
The current consolidation of wave (iv) should end within the next couple of days, if it hasn’t ended already, leading to a rally in wave (v) of ((i)). If wave (iv) needs to dip further, the 2014 trend line (blue) will likely be an area of support for prices to hold above.
Once the wave (v) rallies ensues, we are watching for a target around 1.33.
If Cable is successful in reaching 1.33, then we’ll be on alert for spotting divergence on the RSI indicating the end of the sequence from January 2025. RSI divergence is typical behavior for a fifth wave of an impulsive pattern.
Bottom Line
GBPUSD has accelerated higher in the beginning stages of wave 3. Cable has been consolidating sideways in a corrective wave (iv) of ((i)). Once (iv) completes, then a wave (v) rally could carry GBPUSD up to 1.33.
The blue trend line may offer support should Cable need to correct lower.
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