GBP/USD Slumps Under Elliott Wave Analysis
The GBP/USD currency pair has experienced a sharp decline in recent times, according to an analysis of its price action under Elliott Wave principles. This bearish impulse is characterized by a break below the lower trend line of a bearish base channel, which could potentially trigger further losses into wave three.
Wave three is typically an extended phase of the move, and traders are advised to prepare for a drop towards the 1.3150-1.3000 zone in the coming weeks. This downward momentum is gaining traction as the currency pair breaks below its key base channels.
The analysis also allows for a wave-four pullback or corrective bounce within the broader decline before any continuation into wave five. Overhead, resistance is placed between 1.3270 and 1.3360, which traders should monitor closely to refine their entry points.