Elliott waves analysis – GBP/USD. A zigzag correction may be forming.

The British pound is also struggling to recover after the blow dealt by the dollar. The current observed decline is likely due to the formation of a correction, in which the first part is either completing or has already completed.

Therefore, we can expect a corrective rise and some wandering within a certain price range in the near future, roughly as schematically indicated on the chart. Then, a resumption of downward movement in impulsive form is anticipated. This correction could take the form of a simple zigzag.

The true development of the situation will become clear over time. However, it is not recommended to take any trading actions at the moment.