The GBPUSD currency pair has been in the news recently as it reached the 1.30 level, a significant milestone for the pair. The reason for this surge in value is attributed to the Triple Zigzag pattern that has been forming in the market.
A Triple Zigzag pattern is a complex corrective wave pattern that occurs in financial markets. It is made up of three sets of zigzag patterns, each with its own set of highs and lows. The pattern is characterized by a series of three waves, labeled A, B, and C, with each wave consisting of three smaller waves, labeled W, X, and Y.
In the case of GBPUSD, the Triple Zigzag pattern began forming in early September 2020. The first wave, labeled A, saw the pair rise from a low of 1.2675 to a high of 1.3483. This was followed by a correction in wave B, which saw the pair drop back down to 1.2675.
The second wave, labeled C, began in late September and saw the pair rise again to a high of 1.3177. This was followed by another correction in wave X, which saw the pair drop back down to 1.2675 once again.
The third and final wave, labeled C2, began in early October and saw the pair rise once again to its current level of 1.30. This wave is expected to continue until it reaches a high of around 1.35 before another correction takes place.
The Triple Zigzag pattern is a rare occurrence in financial markets and is typically seen as a bullish signal. This is because it indicates that the market is undergoing a corrective phase before resuming its upward trend.
In the case of GBPUSD, the Triple Zigzag pattern suggests that the pair is likely to continue its upward trend in the coming weeks and months. This is good news for investors who are bullish on the pair and are looking to profit from its rise in value.
However, it is important to note that the Triple Zigzag pattern is not foolproof and there is always a risk of the market moving in the opposite direction. Therefore, investors should always exercise caution and use proper risk management techniques when trading in financial markets.
In conclusion, the GBPUSD currency pair has reached the 1.30 level due to the Triple Zigzag pattern that has been forming in the market. This pattern suggests that the pair is likely to continue its upward trend in the coming weeks and months, but investors should always exercise caution and use proper risk management techniques when trading in financial markets.
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