Elliott waves analysis – GBP/USD. The Situation Remains Uncertain.

Following the euro, the pound has made a successful attempt to improve its position. It is possible that the correction, which is a simple zigzag and also wave [ii] in the upward impulsive movement, has completed. If so, the current rise is wave [iii], potentially leading to a prolonged and strong upward movement.

However, we cannot rule out that the formation of the correction in wave [ii] is not yet complete. In this case, the price might fluctuate, and the current local minimum could be updated.

Therefore, to enter buy trades, it is recommended to wait for a corrective pullback and look for entry opportunities there. A possible scenario is schematically indicated on the chart.

For now, it is advised to stay out of the market and observe the situation from the sidelines.