GBPUSD has recently broken above the previous peak on 7.14.2023 high at 1.3143, showcasing a higher high bullish sequence from the 9.26.2022 low. This definitive move leaves no doubt about the direction of the pair, which is undeniably higher.
The rally from the 4.22.2024 low is currently unfolding as a 5-waves impulse Elliott Wave structure. Following the push up from the 4.22.2024 low, wave 1 concluded at 1.3045 with a subsequent pullback in wave 2 ending at 1.266. However, the pair has since turned higher and broken above wave 1, indicating that wave 3 is now in progress.
Wave Progression
Moving up from wave 2, wave (i) concluded at 1.277, with minor dips in wave (ii) ending at 1.272. The pair once again extended higher from this point, resulting in wave i reaching 1.287 and wave ii experiencing a pullback to 1.2798. Subsequently, the pair continued advancing in wave iii towards 1.313 before a pullback in wave iv concluded at 1.307. The final leg, wave v, came to a close at 1.323, completing wave (iii).
Looking ahead, it is reasonable to anticipate the pair ending wave (iv) before embarking on one more leg to wrap up wave (v), which should finalize wave ((i)). Following this, a corrective pullback in wave ((ii)) is expected to correct the cycle from the 8.8.2024 low in a 3, 7, 11 swing pattern before the rally resumes. In the near term, as long as the pivot at 1.266 low remains unbroken, any dips in the pair are likely to find support in the 3, 7, 11 swing for further upside potential.
This analysis provides traders and investors with a comprehensive understanding of the bullish sequences unfolding in the GBPUSD pair, allowing them to make informed decisions based on technical indicators and wave patterns.