Elliott waves analysis – GBP/USD. Attempt to realize the scenario of a terminating diagonal triangle.

The pressure from the US dollar proved too much for the British pound to withstand. Instead of the expected rise, the price moved in the opposite direction. Now, the situation, similar to the euro, appears to be forming wave [v] as a terminating diagonal triangle.

In the near future, we might witness further decline in the pair within the forming wave 4 of [v], down to the trendline indicated on the chart. Then, it will be necessary to observe the reaction at this support level. If the uptrend resumes, opportunities for entering long positions can be considered.

Until then, it is advisable to stay out of the market and observe developments from the sidelines.