Elliott waves analysis – GBP/USD. Another bearish cycle has begun.

In contrast to the situation with EUR/USD, the considered trading pair failed to develop the final diagonal triangle. The price quickly went down, indicating that the upward corrective movement is likely completed. It concluded with a converging horizontal triangle. Thus, the correction took the form of a double zigzag with a simple zigzag as wave [w], a horizontal triangle as connecting wave [x], and another horizontal triangle in wave [y].

Further, a fairly prolonged downward movement is expected, likely to be of an impulsive nature. In light of this, entering into sell transactions appears to be a promising trading decision.