GBPUSD – Elliott Wave Projection

Timeframe: Daily
The GBP/USD daily chart shows a completed five-wave impulse pattern that started from the 1.23328 low (marked as wave (2) and peaked at 1.37890 (wave (5)). The entire structure is clearly nested within a well-respected ascending channel. The third wave (red) extended significantly, with its 1.618 Fibonacci projection around 1.30379 acting as a key support area during the impulsive advance. The corrective waves 2 and 4 both retraced modestly, keeping the bullish momentum intact. The wave (5) high at 1.37890 now stands as a significant resistance level, from where price has started pulling back.

Currently, the market appears to be unfolding a potential corrective phase, possibly an ABC zigzag. Price is hovering near the lower channel support and the key horizontal level around 1.33700. If this level breaks decisively, the pair may drop toward the highlighted support zone near 1.3100–1.3150 before starting a new bullish leg. This area aligns with previous structure and would complete the correction. As long as the price holds above 1.27084 (wave (4) low), the overall bullish structure remains valid. The ADX is low, indicating weak trend strength, which supports the idea of ongoing correction before the next impulsive wave higher.

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