GBPUSD is still trading quite slow and choppy, probably still in red wave 4), after a nice five wave movement has unfolded in the previous wave 3). As such we believe that because of this slow, overlapping movement pair could be in for a more complex correction, ideally a triangle pattern, that may after its completion point towards higher levels in wave 5). At the moment we are still missing waves D and E for the completion of this pattern.

GBPUSD, 1H

Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3. They appear to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility.

Basic Triangle Pattern: