FX.co ★ Wave analysis of GBP/USD on April 20. Start of bullish momentum hints at a price increase

GBP/USD, H4:

On the four-hour time frame, we see the marking of the large wave of the bundle [X], or rather, its last part - the sub-wave (Y). This wave takes the form of an upward triple zigzag W-X-Y-X-Z.

The bearish price movement in the second wave of the bundle X, which is a triple combination, may have been completed. Now the initial part of the bullish simple zigzag [A]-[B]-[C] is being formed, which in the medium-term may complete the entire global wave [X].

Let's take a look at the last section of the chart on an hourly time frame.

GBP/USD, H1:

After the end of the bearish wave of the bundle X, the market began to rise.

Currently, the first part of an upward simple zigzag is forming - an impulse wave [A].

Wave [A] will consist of five sub-waves (1)-(2)-(3)-(4)-(5). At the time of writing this review, the first two sub-waves (1)-(2) have been formed. Also, waves of a smaller wave level 1-2-3 were formed, which are part of the bullish impulse (3).

Most likely, we will soon see the end of a small correction 4, which will be followed by an increase in impulse 5 to the level of 1.412. In the current situation, we can consider opening long positions.

The approximate scheme of possible future movement is shown on the chart.