GBP/USD Elliott Wave Analysis: Bearish Double Zig Zag



The trend is bearish in GBP/USD currency pair, 4 Hours time frame. As I have suggested last week during my daily Live Trading Room session, the price of GBP/USD is going to rise up on a short-term basis to print a corrective bullish wave X leg and traders should look for a buy trade. So, all those Forex traders who have followed my Elliott Wave analysis have made the right decision as the price has ascended. Strong key resistance level is present at 1.2977 price level.

In my judgment, price action in GBP/USD currency pair is now going drop as bullish Wave X pattern looks complete or going to complete soon. So, expect market to resume the down trend and decline towards 1.2625 price level to print bearish Wave Y leg.

Currently, bearish wave Y leg did not start. So, first wait outside of the market and allow price action to print some bearish candlesticks and then look for a possible short trading opportunity to join the down trend to ride bearish wave Y. However; if the price of GBP/USD breaks above 1.2977 key resistance level then down trend is going to end. In such a market scenario, it would be best not to trade the market and re-analyze the GBP/USD 4 chart.