FX.co ★ GBP/USD wave analysis on January 11: Bullish zigzag may complete the final diagonal

For the British pound, it is likely that a major correction (B) is being formed, taking the shape of a triple zigzag. Currently, we are observing the development of an upward wave Z, the internal structure of which resembles a double zigzag [W]-[X]-[Y].

It is assumed that the wave [W] takes the form of a double zigzag of a smaller wave level, after which the connector wave [X] was fully formed. After the completion of [X], bulls drove the price upwards in an impulse (A), then the price corrected in wave (B). In the upcoming trading days, we may observe a rise in price in the final wave (C).

The bullish (C) price is likely to rise to the 1.2850 mark. At this level, the size of wave [Y] will be 50% of [W]. Wave (C) may take the form of a final diagonal.

Today, the publication of the consumer price index and a report on the number of claims for unemployment benefits are expected. These news can influence bullish sentiment.

Therefore, now is a favorable moment to open long positions from the current level with the target of profiting from the end of the bullish trend.

Trading recommendations: buy at 1.2742, take profit at 1.2850.