GBPUSD Elliott wave analysis and weekly outlook – 5th – 9th September 2016

Correction continues

GBPUSD continued to be bullish during last week with a net of approx. 180 pips. But this does not yet invalidate the triangle structure. However, the more momentum price gets to the up side, more likely the corrective structure will be a ZigZag.

gbpusd-h4-forecast-05-09-16-weekly-outlook

One hour chart

The ongoing correction has a long way to go, if the structure proves to be a triangle. But if the pattern would be a ZigZag, one more bullish impulse-move could mark the end of the correction.

gbpusd-h-forecast-05-09-16-weekly-outlook

MACD divergence means that there is at least a short-term bearish move due soon. The expectation is for the pullback to reach the blue rectangle zone around 1.32000 level. In that case, the momentum of the pullback would be the key element to note.

If the pullback was strong and breaks below the blue rectangle and the coinciding trendline, then the completion of wave-D of the triangle will be highly probable. On the other hand, if the pullback lacks momentum and strength, the probability would shift towards completing wave-C of the ZigZag.

 

 

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