Elliott Wave Analysis On GBPUSD And EURUSD
GBPUSD moved higher during Asian session but not to a new high, so it appears that corrective wave four is still unfolding. We are tracking idea of a triangle now which can send price still up to 1.2600, but after a completion of five subwaves.
Invalidation level remains at 1.2268.
EURUSD keeps falling, now beneath the corrective channel line from 1.0849 which is just another confirmation for a bearish continuation. We will be waiting and tracking pullbacks in three waves that could give us an opportunity to join this bearish ride. For now it's too soon to get in, at least for me as invalidation level is too far away.
Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3. They appear to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility.
Basic Triangle Pattern: