GBPUSD Wedge Spells Weakness

Using Elliott Wave Theory as our guide, the recent weakness in GBPUSD is pushing it below the (ii)-(iv) support trend line. This is a bearish symptom that suggests a near term top has carved.

Additionally, a wedge of this nature appears to be an ending diagonal. Ending diagonal's tend to fully retrace which means this market is ripe for a correction back to 1.3450 while holding below the recent swing high.

A move of this nature would likely drag EURUSD, AUDUSD, NZDUSD lower and propel USDCAD, USDJPY higher.

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