FX.co ★ Wave analysis for GBP/USD on April 23, 2021

GBP/USD, H4 time frame:

Let's analyze the current situation of the GBP/USD currency pair.

The higher time frame shows the structure of the final part of the ascending wave of the bundle [X], which takes the double zigzag form. Its final wave Y is a triple zigzag W-X-Y-X-Z.

There is a high possibility that the second wave of the bundle X has completed its formation. It has the structure of a triple combination, and at the moment, the initial part of the upward wave Z is in the development stage.

Now, let's consider the last section of the chart on the hourly time frame.

GBP/USD, H1 time frame:

It is assumed that the wave Z will take the form of a simple zigzag [A]-[B]-[C]. Just in the last section of the graph, the structure of the first wave [A] of this zigzag can be observed. The wave [A], judging by its internal structure, takes the form of a simple five-wave pulse (1)-(2)-(3)-(4)-(5).

It is possible that the first four parts of the specified impulse were fully done. Recently, the zigzag correction wave (4) came to an end, which was followed by the beginning of growth.

In the near future, we can expect the pair to increase in the wave (5) towards the level of 1.4045. At this level, the magnitude of the wave (5) will be equal to 76.4% of the wave (3). Most likely, this coefficient will be reached, since waves with such proportions are often found in impulses.

It is possible to purchase in the current situation.

Have a successful trading day to all!