GBP/USD Market Insight: Update On Our Previous GBP/USD Forecast

GBP/USD Elliott Wave Analysis

In our previous post, "GBP/USD – At the Crossroads of a Complex Correction," we discussed whether the corrective structure was complete. Since then, the GBP/USD has unfolded decisively, providing fresh structural clues and strengthening the case for a completed five-wave impulse from the November 2025 lows.

What’s Changed?

Price action has since validated a clean five-wave motive structure, with Wave 3 extending — the strongest and longest wave in the sequence — it also contained a textbook alternation:

Within this extended Wave 3 :

• Wave 2 unfolded as an expanded flat (sideways corrective structure)

• Wave 4 formed a zigzag correction (sharp corrective structure)

After Wave 3 completion, Wave 4 formed a triangle with the final triangle thrust completing Wave 5.

• Wave 5 terminated precisely at 1.3534 — equalling Wave 1’s length, satisfying the guideline of equality when Wave 3 extends

This perfect symmetry across impulse wave relationships — including the Fibonacci alignment and alternation rule — builds confidence in a completed five-wave advance from 1.3010 to 1.3534.

Are We in Wave 2?

Zooming out to the daily chart, if this count holds, we’ve likely entered a Wave 2 correction. Based on time and price proportion guidelines:

• Wave 2 should take more time to complete than Wave 1, as corrective waves often unfold more slowly than impulsive ones

• This brings February 15th, 2026, into focus as a potential timeline for signs of completion after this date.

Key Technical Levels to Watch:

• Support Zone:

  • 50% retracement of Wave 1 – 1.3273

  • 61.8% retracement – 1.3210

  • 78.6% retracement – 1.3122

• Pattern Watch:

  • Still early in the correction — we remain open to complex structures forming (zigzag, double zigzag, flat, or triangle)

We’ll continue monitoring for structure confirmation as price unfolds. As always, patience is key when anticipating the end of a corrective phase. Traders should avoid premature entries and instead wait for a recognizable structure and supporting confluence.

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