Elliott waves analysis – GBP/USD: Correction Underway.

The British pound, like the euro, has not withstood the dollar’s pressure, significantly declining and updating the current local minimum. This likely marks the beginning of a correction forming a simple zigzag pattern.

It seems wave a in this correction has already formed. If so, we might see an attempt at recovery, during which wave b will form. The potential for upward movement in this scenario is minimal, so it is not advisable to open buy trades. It is better to wait for the resumption of the price decline during which wave c of [ii] will develop.

Until then, it is recommended to stay out of the market and observe the situation.