Elliott waves analysis – GBP/USD. The calm after the storm.

The sudden strengthening of the dollar was unexpected for the British currency as well, whose rate plummeted and instantly recovered, then even went on to update the previously established minimum for the current year. The movement in this direction was anticipated, but it was expected to happen more gradually.

Thus, the formation of wave [c] of the zigzag likely began. Going forward, based on the wave pattern under consideration, a continuation of the impulsive price decrease is expected. However, this is unlikely to occur immediately.

After such a strong movement, the price will want to calm down and stay within a narrow price range, or it may attempt to rebound. In any case, it is recommended to close previously opened sell trades and refrain from any active trading operations for the time being.