GBPUSD – Daily Timeframe
Following a regular bullish divergence, price has shown a strong upward movement as expected.
From an Elliott Wave perspective, the larger Wave A appears to have completed, and the market is currently developing within Wave B.
We expect further bullish continuation toward the 1.37198 level. After reaching this level, a bearish reversal is anticipated with downside targets at:
- 1.30921
- 1.28747
- 1.26083
Invalidation Level:
If price breaks above 1.38717, this analysis will be considered invalid.
Overall, the current structure suggests a continuation of the upward move in the short term, followed by a larger corrective decline
From a fundamental perspective, GBPUSD is influenced by the monetary policy dynamics between the Bank of England and the Federal Reserve.
The British pound may find short-term support from expectations of relatively tight monetary policy or persistent inflation in the UK, which can justify the ongoing upward movement.
However, the US dollar remains fundamentally strong due to higher interest rates and economic resilience. This could limit further upside and eventually trigger a reversal after the completion of the current bullish phase.
In the short term, positive sentiment toward the pound may drive prices higher toward the projected resistance level. However, in the medium term, USD strength and macroeconomic factors could lead to a decline, aligning with the expected bearish move after Wave B completion.
This supports the scenario of short-term bullish continuation followed by a corrective downward movement
Following a regular bullish divergence, price has shown a strong upward movement as expected.
From an Elliott Wave perspective, the larger Wave A appears to have completed, and the market is currently developing within Wave B.
We expect further bullish continuation toward the 1.37198 level. After reaching this level, a bearish reversal is anticipated with downside targets at:
- 1.30921
- 1.28747
- 1.26083
Invalidation Level:
If price breaks above 1.38717, this analysis will be considered invalid.
Overall, the current structure suggests a continuation of the upward move in the short term, followed by a larger corrective decline
From a fundamental perspective, GBPUSD is influenced by the monetary policy dynamics between the Bank of England and the Federal Reserve.
The British pound may find short-term support from expectations of relatively tight monetary policy or persistent inflation in the UK, which can justify the ongoing upward movement.
However, the US dollar remains fundamentally strong due to higher interest rates and economic resilience. This could limit further upside and eventually trigger a reversal after the completion of the current bullish phase.
In the short term, positive sentiment toward the pound may drive prices higher toward the projected resistance level. However, in the medium term, USD strength and macroeconomic factors could lead to a decline, aligning with the expected bearish move after Wave B completion.
This supports the scenario of short-term bullish continuation followed by a corrective downward movement
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.