Bottom line:  GBPUSD bears are very close to completing a multiyear diagonal structure close to 1.1290 as highlighted here. The downside looks limited from here, as most traders might prepare for a reversal ahead.

Technical Analysis:

GBPUSD structure remains unchanged from what was presented here on March 19, 2020. Looking at the recent drop since 1.3515 levels, bears might remain poised for yet another push towards 1.1290 to complete the drop a-b-c that began since 1.4400 levels earlier. Also note that the support trend line of the ending diagonal is also seen to be passing close to 1.1250 levels. Another drop below 1.1414 could produce a throw under, an ideal way to terminate a diagonal structure. Alternately, a 5 wave rally on the lower time frames would indicate that GBPUSD might have formed a meaningful bottom at 1.1414 levels and that the larger trend might be turning higher. In the latter scenario, most traders might be preparing to initiate long positions against 1.1414, with a medium term target above 1.4400 levels respectively. Looking at a larger degree wave structure since 1.2100 levels, GBPUSD seem to have unfolded into 5 waves, with each wave sub dividing into 3 waves. Wave 1 unfolded as a zigzag between 1.2100 and 1.3500 respectively. Wave 2 was a flat and remained sideways for 5 years before terminating around 1.7200 levels. Wave 3 again unfolded as a zigzag a-b-c and terminated around 1.1950 levels. Wave 4 termination might be labelled at 1.4400 levels before finally producing a Wave 5 drop that might have completed at 1.1414 or could complete at 1.1290 levels respectively. If the above counts are correct, GBPUSD is close to forming a major bottom and turning higher for a much longer period. Watch out for the first impulse rally to confirm.

Prepared by

Harsh Japee, Technical Analyst.

GBPUSD Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。