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GBP/USD Bulls Test 1.30 Again But Reversal Remains Likely

Chris Svorcik

GBP/USD

4 hour

The GBP/USD seems to be building a bearish wave B (dark red) of a larger ABC (dark red) pattern, which could complete a complex WXY (orange) correction in wave 4 (green). A bearish breakout below the support line (blue) could confirm (green check) this wave outlook as long as the Fibonacci levels of wave 4 vs 3 are used as support. A breakout above the 1.30 resistance invalidates (red x) the wave 4 (green) and indicates an immediate uptrend.

1 hour

The GBP/USD seems to be developing a 5 wave (grey) pattern within wave C (light green) of wave B (dark red) as long as the price stays below (green check) the 1.2975-1.30 resistance and above the 61.8% Fibonacci of wave 4 vs 3. A break below the 61.8% Fib indicates (red x) the immediate end of wave B (dark red) and start of a bearish correction. A break below the support (blue) indicates a push towards the 38.2% Fib.

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Good trading,
Chris Svorcik
Elite CurrenSea

This article was originally posted on FX Empire

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