GBP/USD 4-Day Timeframe Analysis

Market Structure & Elliott Wave Perspective

• The chart shows a completed 5-wave impulse structure, suggesting the end of a bullish cycle.
• A corrective A-B-C structure appears to be forming, with wave (A) and (B) in progress.
• A rising channel is developing for wave (B), indicating a possible short-term bullish continuation before a major drop.

Key Fibonacci Levels

• The price is approaching key retracement levels:
  • 50% (1.277)
  • 61.8% (1.292)
  • 78.6% (1.314)
• These levels act as strong resistance and could trigger the anticipated wave (C) decline.

Forecast & Trade Outlook

• Bearish Reversal Zone: Price is expected to reverse around the 61.8% - 78.6% retracement zone.
• Downside Target: Potential drop towards 1.1400 - 1.1200, aligning with the 61.8% - 78.6% Fibonacci extension.
• Confirmation: A break below the rising channel and wave (B) structure will signal the start of wave (C) decline.

Conclusion

• Short-term bullish bias within the correction, but a major bearish reversal is expected soon.
• Stay alert for rejection at Fibonacci resistance and confirmation of the sell setup.
• Stay tuned for updates! Track the live setup on TradingView.