GBPUSD has recently made a significant move by breaking above the previous peak on 7.14.2023 high at 1.3143. This breakthrough indicates a higher high bullish sequence from the 9.26.2022 low. The direction of the pair is undoubtedly higher, showing a clear path towards an upward trend.
Currently, GBPUSD is experiencing a rally from the 4.22.2024 low in the form of a 5 waves impulse Elliott Wave structure. This structure indicates a strong upward momentum in the pair. Wave 1 ended at 1.3045, followed by a pullback in wave 2 ending at 1.266. However, the pair has turned higher and broken above wave 1, suggesting that wave 3 is now in progress.
Moving on from the lows, wave (i) ended at 1.277, with a dip in wave (ii) ending at 1.272. Subsequently, the pair extended higher, with wave i ending at 1.287 and a pullback in wave ii ending at 1.2798. Continuing the upward journey, wave iii reached 1.313, followed by a pullback in wave iv ending at 1.307. The final leg of wave v concluded at 1.323, completing wave (iii).
Looking ahead, it is expected that the pair will end wave (iv) and rally one more leg to conclude wave (v), which should complete wave ((i)). Following this, a pullback in wave ((ii)) is anticipated to correct the cycle from the 8.8.2024 low in a 3, 7, 11 swing before the rally resumes. In the near term, as long as the pivot at 1.266 low remains intact, any dips are likely to find support in a 3, 7, 11 swing for further upside potential.
This analysis of the GBPUSD pair suggests a strong bullish sentiment, with a clear path towards higher peaks. Traders and investors are advised to closely monitor the wave progression and key support levels to capitalize on the potential upside in the pair.