GBP/USD: Impulsive decline underway

February 26, 2016 10:20 AM


Cable has fallen slightly beneath 1.3900 this week which makes a decline in five waves down from 1.4410 (black wave 4) without any overlaps so it looks like that we have an impulsive decline underway. That said, we need five waves from 1.4667 within wave 5-circled, so more weakness will be expected after bounce up into red wave 4) that may find resistance at 1.4060-1.4165 area.

GBP/USD, Four Hour



The U.S. dollar to Swiss franc (USD/CHF) has turned with five waves up from 0.9660 low which is an important evidence for a change in trend, from bearish back to bullish mode. Always, when market turns you can expect a minimum three wave structure, so it means that more gains should follow after wave 2)/B) retracement that can send price back to the upside soon after the pair already made three waves of a pullback to 0.9850 area.

USD/CHF, Four Hour

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and He also is founder of forex services on provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: