British Pound/U.S.Dollar (GBPUSD) 4 Hour Chart Elliott Wave Technical Analysis 18 September 23

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GBPUSD Elliott Wave Analysis Trading Lounge 4 Hour  Chart, 18 September 23

British Pound/U.S.Dollar (GBPUSD) 4 Hour Chart

GBPUSD Elliott Wave Technical Analysis

Function:Counter Trend

Mode: corrective

Structure: wave 5 of C

Position: W of 2/B

Direction;Next higher  Degrees: X of 2/B

Details:  Red wave 5 of blue wave C  in play . Wave X Confirmation level: 1.25583

The GBPUSD Elliott Wave Analysis conducted on 18 September 23, is based on the 4-hour chart of the British Pound/U.S. Dollar (GBPUSD) currency pair. This analysis employs the Elliott Wave theory to provide insights into potential market movements, focusing on a shorter time frame.

 

The primary Function of this analysis is identified as "Counter Trend." This indicates that the analysis is primarily concerned with identifying potential corrective movements within the market. Counter-trend trading aims to take advantage of price retracements or corrections within the context of the broader trend.

 

The Mode of the market is categorized as "corrective," suggesting that the market is currently in a phase of correction rather than a strong impulsive move. Corrective phases are characterized by price movements that oppose the prevailing trend, often presenting trading opportunities when the correction is complete.

 

The market Structure is described as "wave 5 of C," signifying that the analysis is focusing on the fifth wave within the broader corrective structure labeled C. Understanding the specific wave within a corrective pattern helps traders anticipate potential price movements and reversal points.

 

The Position within the Elliott Wave pattern is defined as "W of 2/B." This means that the analysis is centered on the W wave within the broader corrective pattern labeled 2/B. Traders can use this information to gauge their position within the overall corrective pattern.

 

In terms of the Direction Next Higher Degrees, the analysis points to "X of 2/B" as the potential development. This suggests that, following the completion of wave W, the market may transition into the X wave within the broader corrective pattern.

 

The analysis provides specific Details, mentioning that "Red wave 5 of blue wave C" is currently in play. It also highlights the "Wave X Confirmation level" at 1.25583. This level is crucial for traders as it signifies a potential confirmation point for the commencement of the next wave within the corrective pattern.

 

In summary, the GBPUSD Elliott Wave Analysis for 18 September 23, focuses on potential corrective movements within the GBPUSD currency pair. Traders should consider the Function, Mode, Structure, Position, and Direction to make informed trading decisions. Combining this analysis with other technical and fundamental indicators while practicing sound risk management is essential in the volatile foreign exchange market.

Technical Analyst : Malik Awais