Capital Properties FX
Capital Properties FX

GBPUSD – Double Three Running


This four-hour chart on the GBPUSD pair comes in line with what the EURUSD does. Both pairs form the same pattern, a double three running. For this reason, we look for cable to break to the upside too.

GBPUSD Double Three Running

Details on the GBPUSD Double Three Running Pattern

Looking at the price structure on this four-hour chart, one sees the price coming down and making that low in the 1.48 area. However, the move channels too well.

Moreover, it has similar corrections. And, on top of that, that spells trouble for any possible impulsive wave. Such a move should be corrective. Thus, labeled as such.

For that reason, the market formed a zigzag, a correction, as no impulsive activity exists. Hence, the pair ended a five-wave structure to the downside that only finished a wave-c of a flat of a higher degree.

Wave one in red shows a leading diagonal. Next, an intervening x-wave in the form of a zigzag as the corrective wave. Finally, the price began a new correction.

Considering the time it took the first correction to form, we notice similar patterns, hinting to a double three running.

Conclusion

Such a pattern like double three running is almost always followed by an extended third wave to the upside. As such, bulls get ready for tripping some stops.