Elliott Wave View: GBPUSD Has Scope to Extend Correction

Short Term view in GBPUSD suggests the decline from September 14, 2021 peak unfolded as a 5 waves impulse Elliott Wave structure. Down from September 14, wave ((i)) ended at 1.3793 and rally in wave ((ii)) ended at 1.3854. Pair resumes lower in wave ((iii)) towards 1.3616 with internal subdivision as 5 waves impulse in lesser degree. Down from wave ((ii)), wave (i) ended at 1.3806, and rally in wave (ii) ended at 1.3841. Pair resumes lower in wave (iii) towards 1.3641 and rally in wave (iv) ended at 1.3693. Final leg lower wave (v) of ((iii)) ended at 1.3616.

Rally in wave ((iv)) ended at 1.3690 and turned lower in wave ((v)) ending at 1.3610 and completing wave 1. We are currently calling 3 waves up to correct as wave 2. Internal subdivision of wave 2 is unfolding as an ((a)), ((b)), ((c)) zigzag structure. Wave ((a)) ended at 1.3751 and we are developing wave ((b)) in 3 swings which it should bounce as wave ((c)) to complete wave 2. As we stay below 1.2913 we expected further downside in the pair. Near term, as far as pivot at 1.3913 high stays intact, expect rally to fail in 3, 7, or 11 swing for further downside.