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The GBP/USD currency pair is continuing its short-term downward trajectory following the peak established on August 21, 2026. According to Elliott Wave analysis, the price action is forming a clear five-wave impulsive structure. Wave ((i)) concluded at 1.3474, which was then followed by a corrective wave ((ii)) bounce that halted at 1.3569. The pair subsequently extended lower in wave ((iii)) to reach 1.3335 before entering a brief consolidation period.
The technical picture suggests that the bearish momentum remains intact as the pair develops the secondary waves of this primary impulsive pattern. Technical indicators align with the wave structure, pointing toward potential downside continuation unless price action invalidate the current count by breaking above key structural resistance levels.
Traders and foreign exchange market participants are closely monitoring critical support zone breakdowns and invalidation levels for this wave count. If the downward extension progresses as expected in wave ((v)), GBP/USD could test lower target zones, making upcoming UK and US macroeconomic releases crucial drivers for directional confirmation.
