Photo by Anthony on Unsplash
 

We talked about Cable(GBPUSD) back on December 09, 2025, where we mentioned and highlighted an ongoing five-wave bullish impulse. 

Cable has continued trading within its upward channel, most recently pushing beyond the 1.3525 resistance area, reinforcing the idea that the move from the November lows is still unfolding impulsively — and without a meaningful pullback so far.

This extension suggests that the bullish structure remains intact, though price action is now showing characteristics that could signal an upcoming correction. Specifically, the recent thrust may represent a potential fifth wave emerging out of a running triangle formed in wave four, implying that a corrective phase could now be underway. If so, this would align with classic Elliott Wave behavior where strong impulsive segments are followed by corrective pullbacks.
 

GBPUSD 4H Chart
 

A clear break of the current channel lower boundary will be an important early sign that bears are gaining control. On the downside, support remains clustered around the previous fourth-wave levels near 1.3416 and 1.3312, which are logical targets for corrective dip buyers. Such pullbacks would not necessarily signal a bearish reversal, but rather a normal part of wave-based price structure as the market digests recent gains.

After any corrective dip — especially if price finds support around those prior wave-four areas — the broader bullish structure would still favor eventual higher highs as the larger impulse sequence remains incomplete.

Key levels to monitor:

• Support: ~1.3416, ~1.3312 — early corrective zones
• Resistance: 1.3525+ — recent upside breakout
• Trend integrity: A break below the rising channel would mark a shift toward deeper correction

As always in Elliott Wave terms, while extensions can last longer than expected, a well-defined channel and wave count should guide traders about when a corrective shift may be developing versus a continued impulsive advance.

For a detailed view and more analysis like this, you can watch our latest recording of a live webinar HERE.

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