GBPUSD Bulls Looking to Finish 2023 Strong
<p>It’s been over a year since Liz Truss’ mini-budget plunged GBPUSD to under 1.0400 in September, 2022. The Pound Sterling is looking much better now, trading above 1.2700 and on track to finish 2023 in positive territory. For a currency, which has devalued by as much as 40% against the US dollar since 2007, this is no small feat. It wasn’t a smooth ride, though, as the pair barely held above 1.2000 just two months ago. Assuming no major external shocks this month, the bulls should celebrate at the end of December. What can we expect in 2024? This is the subject of this article.</p>
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<figure><a href="https://ewminteractive.com/wp-content/uploads/2023/12/GBPUSD-Elliott-Wave-analysis-4h-chart.png"><img fetchpriority="high" decoding="async" width="1273" height="926" src="https://ewminteractive.com/wp-content/uploads/2023/12/GBPUSD-Elliott-Wave-analysis-4h-chart.png" alt="GBPUSD poised to finish 2023 in the green" class="wp-image-27921" srcset="https://ewminteractive.com/wp-content/uploads/2023/12/GBPUSD-Elliott-Wave-analysis-4h-chart.png 1273w, https://ewminteractive.com/wp-content/uploads/2023/12/GBPUSD-Elliott-Wave-analysis-4h-chart-962×700.png 962w, https://ewminteractive.com/wp-content/uploads/2023/12/GBPUSD-Elliott-Wave-analysis-4h-chart-768×559.png 768w, https://ewminteractive.com/wp-content/uploads/2023/12/GBPUSD-Elliott-Wave-analysis-4h-chart-600×436.png 600w" sizes="(max-width: 1273px) 100vw, 1273px" /></a></figure>
<p>The 4-hour chart of GBPUSD reveals the structure of the recovery from 1.0360. It consists of two parts – motive and corrective. The motive one involves a <a href="https://ewminteractive.com/elliott-wave-patterns" target="_blank" rel="noreferrer noopener">five-wave impulse</a> up to 1.2448 in January, 2023, labeled 1-2-3-4-5 in wave (1/A). Wave 2 is a <a href="https://ewminteractive.com/mischievous-running-flat-correction" target="_blank" rel="noreferrer noopener">running flat correction</a>, followed by an extended wave 3, whose five sub-waves are also visible. Wave 5 exceeds the top of wave 3 by just a pip.</p>
<p>The end of wave 5 of (1/A) marks the beginning of an A-B-C running flat retracement in wave (2/B). This is the corrective phase of the <a href="https://ewminteractive.com/elliott-wave-principle-infographics" target="_blank" rel="noreferrer noopener">Elliott Wave cycle</a> on the 4h chart of GBPUSD. Wave A is a simple a-b-c zigzag with a <a href="https://ewminteractive.com/what-are-triangles-and-what-information-they-give-us" target="_blank" rel="noreferrer noopener">triangle</a> in wave ‘b’. Wave B is also a zigzag, where the impulsive structure of wave ‘c’ is marked i-ii-iii-iv-v. Wave C then dragged the pair to 1.2037 in October, where the entire pattern seems to have ended.</p>
<p>If this count is correct, the uptrend has officially resumed and we can anticipate much higher levels in GBPUSD going forward. <strong>Not only should the bulls exceed the top of wave B at 1.3142, but they can also go for the resistance near 1.4000 in the months ahead</strong>. All told, 2024 looks promising, especially given the <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank" rel="noreferrer noopener">high probability</a> of interest rate cuts in the US.</p>
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<p>The post <a rel="nofollow" href="https://ewminteractive.com/gbpusd-bulls-looking-finish-2023-strong">GBPUSD Bulls Looking to Finish 2023 Strong</a> appeared first on <a rel="nofollow" href="https://ewminteractive.com">EWM Interactive</a>.</p>
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