GBP/USD, H4:
We will conclude the trading week by examining the GBP/USD currency pair.
On the higher time frame, we see the development of the initial part of a new downward trend, the construction of which began after the end of a large upward wave (Y). Wave Y is a double zigzag.
Thus, the initial part of the zigzag pattern is currently being built - a bearish impulse wave.
At the moment, the market has completed two sub-waves [1] and [2] and one wave of a smaller wave level - impulse (1). Let's consider the last part of the chart on the hourly time frame.
GBP/USD, H1:
Here we see that after the completion of the bearish five-wave impulse (1), a corrective rise in price began within wave (2). This wave is likely to take the shape of a standard A-B-C zigzag and will soon come to an end.
Wave A is an upward impulse, wave B is a zigzag correction, and wave C, judging by the received structure, is the final diagonal. We see that the downward wave [4] has gone beyond the end of wave [1], hence it follows that wave C is not an impulse.
It is assumed that the price will reach the level of 1.3880, after which it will start moving down, as indicated on the chart. At the indicated price level, the value of wave (2) will be equal to 61.8% along the Fibonacci lines from wave (1).
We will continue to monitor the currency pair in the next trading week.
