GBP/USD Elliott Wave: Buying the dips at the blue box area

In this technical article, we’re going to take a look into the Elliott Wave charts of GBPUSD,  exclusively presented in the members’ area of our website.  As our members know GBPUSD has recently  made pull back that made clear 3 waves down from the March 8th peak and completed correction right at the Equal Legs zone ( Blue Box Area) . In further text we’re going to explain the Elliott Wave pattern  and trading setup.

GBP/USD Elliott Wave one-hour chart 03.18.2024

The pair is correcting cycle from the 1.2597 low. The pull back is showing lower low sequences from March 8th peak. Current view suggests that the correction is still in progress. Our analysis forecasts further downside toward the 1.2675-1.2597 area ( blue box).

Despite the expected extension lower, we advise against selling GBPUSD.  Upon reaching this blue box area, we anticipate the pair to attract buyers. We expect to se either rally towards new highs or a corrective bounce in three waves at least. Once the bounce reaches the 50% Fibonacci retracement level against the connector high, we’ll secure our position by moving the stop-loss to breakeven.  To safeguard our trade, we’ll closely monitor for any break below the marked invalidation level : 1.2597.

GBP/USD Elliott Wave one-hour chart 03.21.2024

The pair found buyers within the Blue Box area as expected. We got a decent reaction from the 1.2667 low. As a result, traders who entered long positions are now enjoying risk-free profits. The bounce has exceeded the 50% Fibonacci retracement level against the connector peak.  With the price holding above the  1.2667 low, we believe the next leg up can be in progress. For confirmation on the next leg up, we’re looking for a break above the((i)) black peak.