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GBPUSD Elliott Wave Analysis Trading Lounge
British Pound/ U.S. Dollar (GBPUSD) Day Chart

GBPUSD Elliott Wave Technical Analysis

• FUNCTION: Bullish Trend
• MODE: Impulsive
• STRUCTURE: Navy Blue Wave 3
• POSITION: Gray Wave 1
• DIRECTION NEXT HIGHER DEGREES: Navy Blue Wave 3 (started)
• DETAILS: Navy Blue Wave 2 appears complete, Navy Blue Wave 3 now active.
• Cancel invalid level: 1.21045

The daily chart reflects a firm bullish trend in GBPUSD, underlined by impulsive wave patterns. The structure reveals navy blue wave three forming as part of a larger upward cycle marked by gray wave one. With navy blue wave two apparently completed, wave three is progressing strongly. This stage typically offers the greatest movement in an Elliott Wave impulse, suggesting that significant upward potential may lie ahead.

This analysis marks the end of navy blue wave two and confirms the start of wave three’s rally. The impulsive pattern reflects heightened institutional buying, and the daily timeframe suggests that this bullish stretch might continue. A break below 1.21045 would invalidate the current wave count, possibly pointing to a more complex pattern or the need for reevaluation.

The chart offers essential context about GBPUSD’s position within its bullish progression. The structure suggests wave three could lead the pair into a sustained upward phase. Traders should watch price action closely for further confirmation and monitor the invalidation level for early signs of weakness.

This technical assessment supports strategic positioning during this bullish phase, presenting a strong opportunity with defined risks. The wave count shows potential for upward acceleration. However, traders should remain cautious if the support at 1.21045 is breached, prompting a reassessment. The chart reinforces a solid bullish stance, hinting at further gains during wave three’s development.

British Pound/ U.S. Dollar (GBPUSD) 4 Hour Chart

GBPUSD Elliott Wave Technical Analysis

• FUNCTION: Bullish Trend
• MODE: Impulsive
• STRUCTURE: Orange Wave 1
• POSITION: Navy Blue Wave 3
• DIRECTION NEXT HIGHER DEGREES: Orange Wave 1 (started)
• DETAILS: Navy Blue Wave 2 appears complete, now Orange Wave 1 of 3 is underway.
• Cancel invalid level: 1.21045

The four-hour chart reveals a bullish GBPUSD setup, showing impulsive characteristics in its wave structure. Orange wave one is forming within a larger bullish progression marked as navy blue wave three. This implies the pair has ended wave two's correction and begun a fresh advance. The setup indicates the market could be at the beginning of a notable upward move.

With navy blue wave two concluded, orange wave one’s rise is gaining traction. This impulsive momentum suggests growing buying pressure, and the four-hour chart supports continued upside. Should the pair fall below 1.21045, the wave count would be invalid, possibly indicating a more complex scenario or need for structural revision.

This chart provides key insight into GBPUSD’s current positioning in the bullish cycle. The early-stage advance hints at long-term movement, with orange wave one initiating the wider wave three phase. Traders should track price movement for confirmation while remaining aware of the critical support level’s importance.

This analysis offers guidance for managing trades during the ongoing bullish setup, identifying opportunities and noting crucial risks. The wave structure points to continued upward motion, though any breach of 1.21045 might require reassessment. Overall, the chart suggests upside momentum remains strong.

Technical Analyst: Malik Awais

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