GBPUSD (Cable) Still Trapped Inside A Larger Triangle Correction

Cable has seen a significant decline throughout May and June, but the market found support around the 1.3150 area, which was the March low. Since then, we have seen a strong recovery develop, suggesting that the corrective phase is not yet complete. The current structure could be part of a larger wave B correction, potentially forming a triangle pattern, although an alternative scenario remains that we are developing a flat correction with further upside toward the 1.3660–1.3700 area.

From an Elliott Wave perspective, triangles are corrective patterns that usually appear before the final move in the direction of the larger trend. They consist of five overlapping waves labeled A-B-C-D-E, where each leg normally unfolds in three waves, creating a sideways and contracting price structure. The key characteristic of a triangle is the loss of momentum as the pattern develops, with each successive wave becoming more limited in range.

In the near term, we are tracking wave (D), which appears to be attempting to turn lower and could trigger a minimum three-wave ABC pullback, potentially representing the next leg within the developing triangle structure. However, until this corrective phase is fully completed, price action may remain choppy and difficult to trade.

The broader picture since April still looks corrective, meaning the higher-degree downtrend is likely not finished yet. A triangle pattern would fit this idea well, as it represents a period of consolidation before the next impulsive move. The key is to wait for confirmation that this corrective pause has ended before expecting the next larger directional move.