FX.co ★ Wave analysis of GBP/USD for March 19, 2021

GBP/USD, H4:

As in previous trading days, we see the formation of a large-scale triple zigzag. Its middle part is visible on the graph.

Last month, the third sub-wave Y of this zigzag was completed, after which the market began to move down in the wave bundle X.

It is assumed that X is the standard zigzag [A]-[B]-[C]. Let's consider the structure in more detail on the hourly time frame.

GBP/USD H1:

When examining wave X on the hourly time frame, we notice that its first impulse wave [A] is completed. It is a simple five-wave pulse (1)-(2)-(3)-(4)-(5).

We are currently in a bullish corrective wave [B]. Most likely, it will take the form of a simple zigzag (a)-(b)-(c). Apparently, impulse (a) and bearish correction (b) to this impulse is completely over, and now the price is rising within the final wave (c).

It is assumed that the descending small sub-wave 4, which is part of wave (c), has come to an end. Since it completed its pattern below the end of wave 1, we can conclude that the entire wave (c) is the final diagonal.

In the short term, we expect the market to grow to the level of 1.4035, at which the values of sub-waves (a) and (c) will be equal.