Photo by Philip Veater on Unsplash
 

Cable is coming nicely to the upside, pushing well above the 1.3251 level and trendline resistance, and also breaking out of the base channel. This suggests we are in a third leg, and if this is wave three of an impulse, then the higher-degree correction has ended.

So we can expect more upside, with the next potential resistance for the current wave three at the 1.3474 to 1.3525 area, just be aware of wave (4) pullback in the meantime.

Later on pair can even revisit 2025 highs. A drop back beneath 1.3128 would invalidate the current bullish interpretation.
 

GBPUSD 4H Chart
 

Cable keeps trading in an intraday corrective pullback, which we see it as an abc correction within wave 4 that can find the base around 1.3300 level, so soon we may see a bullish resumption within wave 5 of (3) towards 1.34x area.
 

GBPUSD 1H Chart
 

An impulsive wave is a key component of the Elliott Wave Theory. It is a sustained and strong move in the direction of the overall trend in the financial market. According to the theory, impulsive waves are composed of five smaller sub-waves. The first, third, and fifth sub-waves move in the direction of the trend and are known as impulsive waves themselves. These waves are typically characterized by strong buying or selling pressure and represent the main driving force behind the trend. The second and fourth sub-waves, known as corrective waves, are smaller retracements against the trend. Impulsive waves are often followed by corrective waves, which help to consolidate and retrace the price before the next impulsive wave begins. Understanding and correctly identifying impulsive waves is important for traders and investors using the Elliott Wave Theory to analyze and predict market trends.
 

Thank you for reading and see you on the next one!

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