Guest Commentary: The Next Good GBP/USD Buying Opportunity
The drop in GBPUSD from 1.6603 to 1.6305 was corrective in nature and completed wave B, as per our preferred view. The rally since then is being viewed as a simple A-B-C pattern, which we believe is part of wave iv of (c).
After another high, which can take GBPUSD as high as 1.6664, the pair should make a corrective pullback (b) and continue the rally.
We don't like selling the pair pair in wave b and would rather use dips as buying opportunities.
It remains to be seen where exactly wave a will end, but wave b could take the pair back towards the 1.6437 - 1.6460 area.
By Eric Morera of Elliottwave-Forecast.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.