On the 4h chart of GBPUSD we are observing a nice minimum three wave move to the upside developing, with price specifically trading in black wave B, after an leading diagonal had unfolded in wave A. As such we now expect a three wave corrective move to show up in this wave B with possible reversal zone around the 78.6 Fibonacci ratio.
At the moment we can see that price already completed the first sub-wave A-circled of wave B and is now unfolding wave B-circled. That said more weakness should later follow within the final blue wave C.
CHECK OUR 2016 Now and Then Charts>> http://ew-forecast.com/newsletter/
Visit our website and Get more charts and forecasts at www.ew-forecast.com
You can also follow us on twitter @ewforecast