Bullish Retracement Before a Major Downturn?

GBP/USD is currently navigating a critical phase within the Elliott Wave structure, suggesting a potential retracement before a larger downward move.

📌 Key Observations:

• The five-wave impulse (labeled 1-5) has completed, marking the end of a bullish cycle.
• A corrective ABC pattern is forming, with price approaching the Fibonacci retracement zone (50%-78.6%) between 1.277 - 1.314.
• The red resistance zone aligns with the 61.8% retracement, a key level where price could face rejection.

📉 Potential Outlook:

• If GBP/USD fails to break above the 1.292 zone, we could see a strong bearish reversal, targeting new lows near 1.1800.
• A break above 1.314 would invalidate this bearish scenario, potentially leading to further bullish momentum.

💡 Trading Approach:

• Bears: Watch for rejection near 1.292-1.314 for potential short setups.
• Bulls: A confirmed breakout above 1.314 could open doors for extended gains.

Stay tuned for more updates as this structure unfolds! 🚀📊 You can view our setup live on TradingView and track the market in real-time to see how our analysis plays out. Don't miss out—stay ahead of the trend with us! 🔗📈