GBP/USD Bearish ABC Pullback within Wave 4 Pattern

The GBP/USD is building a bearish retracement within the long-term uptrend. When is the Cable ready for a bullish continuation?

Price Charts and Technical Analysis

The GBP/USD is building an ABC (pink) correction. The current swing up could be part of a wave B. This means that another bearish swing for wave C is possible. The main target is the 38.2% Fibonacci retracement, the -61.8% Fib target, and the 144 ema close (blue box) at the round level of 1.30.

This support zone (blue box) could complete the wave 4 (purple) and start a new uptrend. A break below the 50% Fib however invalidates (red x) the bullish outlook. Alternatively, a break, pullback and bounce above the 21 ema zone could indicate a bullish swing without a deeper retracement.

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

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