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  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.42% 🇬🇧GBP: -0.05% 🇨🇦CAD: -0.06% 🇦🇺AUD: -0.22% 🇨🇭CHF: -0.27% 🇯🇵JPY: -0.45% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/08zO57ZXTy
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  • GBP/USD is continuing its modest climb higher that began a fortnight ago, and could hit the psychologically important 1.40 level soon. Get your $GBP market update from @MartinSEssex here:https://t.co/p7X6envgGA https://t.co/N24E4oTDxs
  • EUR/USD Nosedives on Record US Services PMI, Clarida Remarks -via @DailyFX Link to Analysis - https://www.dailyfx.com/forex/market_alert/2021/08/04/eur-usd-nosedives-on-record-us-services-pmi-clarida-remarks.html $EURUSD $DXY #Forex
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.46% 🇨🇦CAD: -0.00% 🇬🇧GBP: -0.02% 🇪🇺EUR: -0.17% 🇨🇭CHF: -0.24% 🇯🇵JPY: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/n6oAzR0k7T
  • The Clarida Curveball appears to have come in ~1 hour 20 minutes after the nasty ADP report (and five mins after I started the webinar) After ADP - $USD puts in bee-line to support, when testing bottom of the zone, Clarida's comments this is what's doing the driving https://t.co/svO0TPdYRV
  • Barring a US government shutdown and/or hijinks around the September/October debt ceiling, a December 2021 taper announcement followed by commencement in January 2022 is still likeliest path forward imo
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.92% FTSE 100: 0.32% France 40: 0.32% US 500: -0.30% Wall Street: -0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/a2A4qPD7PQ
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How Much Higher Can GBP/USD Continue?

How Much Higher Can GBP/USD Continue?

Jeremy Wagner, CEWA-M, Head of Education

According to Elliott Wave theory, triangle patterns precede a terminal wave in the sequence. It appears GBP/USD carved an Elliott Wave triangle from December 2016 to April 2017. That suggests the rally that began on April 9 is a terminal wave in that once this wave completes, a larger correction may settle to possibly retests 1.19.

Both Elliott Wave and IG Client Sentiment suggests there is still some strength left in the move. Sentiment finished last week at -1.78 as the traders net short outnumber those traders net long. Though we may see some strength this week, the rally may be running out of real estate to the upside.

How Much Higher Can GBP/USD Continue?

Wave relationships suggest a potential for a pivot near 1.3060. If this figure is surpassed, there is a stronger level of multiple wave relationships resting near 1.3200-1.3235. This doesn’t mean Cable has to turn lower at that point, but the multiple wave relationships suggest an elevated potential for a reaction lower.

This corrective pattern could work its way higher towards 1.34, though we are uncertain of the odds that it will reach that high.

Has recent GBP market movements have you confused? Check out DailyFX’s second quarter forecast.

---Written by Jeremy Wagner, CEWA-M

Discuss this market with Jeremy in Monday’s US Opening Bell webinar.

Follow on twitter @JWagnerFXTrader .

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EUR/USD Elliott Wave article here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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