The U.S. CPI numbers and British unemployment data tomorrow are likely to catalyse another directional swing on the price action of the GBPUSD. The pair is currently developing a major reversal following the recent completion of a Double Top pattern.
The reversal comes after the price action had completed a major 1-5 impulse wave pattern, as postulated by the Elliott Wave Theory.
The rising bearish sentiment in the market is underpinned by the fact that the price action managed to penetrate below the 23.6 per cent Fibonacci retracement level at 1.3823 and the 50-day MA (in green). This results in a bearish crossover on the histogram of the MACD indicator.
Presently, the price action is headed towards the 38.2 per cent Fibonacci at 1.3780, which is about to be crossed by the 100-day MA (in blue). This appears to be part of the second impulse leg (2-3) of a newly emerging bearish 1-5 impulse wave pattern
The reversal comes after the price action had completed a major 1-5 impulse wave pattern, as postulated by the Elliott Wave Theory.
The rising bearish sentiment in the market is underpinned by the fact that the price action managed to penetrate below the 23.6 per cent Fibonacci retracement level at 1.3823 and the 50-day MA (in green). This results in a bearish crossover on the histogram of the MACD indicator.
Presently, the price action is headed towards the 38.2 per cent Fibonacci at 1.3780, which is about to be crossed by the 100-day MA (in blue). This appears to be part of the second impulse leg (2-3) of a newly emerging bearish 1-5 impulse wave pattern
