GBPUSD: Bearish Impulse Not Done Yet

The current GBPUSD structure hints at a bearish zigzag consisting of primary waves Ⓐ-Ⓑ-Ⓒ.

The first two waves of the structure are fully completed: wave Ⓐ- formed a 5-wave impulse, wave Ⓑ has taken the form of a triangle, wave Ⓒ is still under development and expected to have to maintain wave Ⓐ- ‘s pattern; a 5-wave impulse.

The bearish 5-wave impulse is expected to be completed near 1.1595. At that level, prices will reach the 261.8% extension of wave Ⓐ.

Without a meaningful retracement so far though, we must consider an alternative scenario.

In this scenario, the i primary impulse Ⓒ formed as we speak, is seen as an intermediate impulse wave (1). This suggests further weakness than the first scenario does.

This wave can find an intermediate bottom near 1.1618, in which case, minor wave 5 will be at the 150% extension of minor bearish impulse 3.

After the completion of the impulse (1), we could see a small correction in minor (2) near the 1.2400 area. This target would respect the tenancy prices retracing 50% of wave (1).