GBP/USD Plummets as Bearish Impulse Accelerates Towards 1.3150-1.3000 Zone

The GBP/USD currency pair has dropped sharply in recent trading sessions, prompting analysts to predict further losses. According to Elliott Wave analysis, a bearish impulse is unfolding, signaling potential acceleration into wave three of the decline. This phase is typically an extended move downward.

A break below the lower trend line of a bearish base channel is seen as a trigger for this potential acceleration. The next downside zone being monitored is between 1.3150 and 1.3000. Overhead, resistance is located at around 1.3270-1.3360.

The analysis also allows for a wave-four pullback or corrective bounce within the broader decline before any continuation into wave five. This means traders should remain prepared for short-term rallies that could offer opportunities to sell. To capitalize on this trend, derivative traders are suggested to establish short positions or purchase put options on these corrective rallies.