Gbp/Usd Elliott Wave Analysis

Gbp/Usd The daily chart looks to have re-set itself into selling mode, and has also failed to break and get through the 50% RSI area. The 20 SMA is at 1.4850 and will be a major area as support or resistance that the pair may battle for the rest of this week. The 4 hour chart has moved sideways since November, and in reality offered little more than some long and short breaks, but nothing sustainable. The 1 hour chart has just broken a support trend-line at 1.5000, and looks to have a big drop if 1.4750 cannot hold.

Big Picture Elliott Wave: The cable is currently trading at a significant support zone around 1.4850, where we may see some buyers in action as the market hit the 50% retracement in the last couple of hours. In the long term we may be targeting the lows around 1.3700 (blue wave V) ), but before that the market could make another move up to complete the wave e of blue IV) within the simple zig zag move. In this case we could see a move towards the 61.8% retracement (blue Fibonacci levels) before the turning point in wave V) appears.