Elliott Wave View: GBPUSD May See Further Pullback

Short term Elliott Wave View in GBPUSD suggest that the decline from June 1, 2021 high is unfolding as a 5 waves impulse Elliott Wave structure. Down from June 1, wave (1) ended at 1.3784 and rally in wave (2) ended at 1.4. Wave (3) lower is currently in progress and unfolding in a 5 waves impulse in lesser degree. Down from wave (2), wave (i) ended at 1.3946 and bounce in wave (ii) ended at 1.3986. Pair resumes lower in wave (iii) towards 1.388, and bounce in wave (iv) ended at 1.3939. Final leg lower wave (v) ended at 1.3869 and this completed wave ((i)) in higher degree.

Pair then rallied and completed wave ((ii)) at 1.3940. Pair resumes lower in wave ((iii)) towards 1.3812 and bounce in wave ((iv)) ended at 1.3873. Expect two more lows to end wave ((v)) and this should complete wave 1 in higher degree. Afterwards, pair should rally in wave 2 to correct cycle from June 23 high before the decline resumes. Near term, as far as June 1 pivot at 1.4 high remains intact, expect rally to fail in 3, 7, or 11 swing for further downside.