GBP/USD Wrestle Back Control & Aim for 1.40 Target
The GBP/USD broke below the rising wedge… but price action failed to reverse.
Instead, price action bounced at the long-term moving average and support zone (blue box) again.
Your capital is at risk
The bulls are back in control (as mentioned in the EU-GU video) and looking for a bullish breakout now.
Price Charts and Technical Analysis
The GBP/USD quickly tested the 21 ema zone and bounced back upwards (green circle). Price is now testing a key decision zone, which are the resistance trend lines (orange).
- A bearish bounce (orange arrow) could indicate a fall back towards the 21 ema zone.
- A bullish bounce (green arrow) is expected at the 21 ema zone.
- A breakout (blue arrow) is expected either immediately or after the pullback.
- The 1st target is Wizz7 level at 1.3860.
- A bull flag pattern (grey arrows) could confirm another push up (blue arrow).
- The 2nd target is Wizz8 at 1.40.
- Only a strong reversal impulse (red arrow) ends the uptrend.
The bullish price action is part of a wave 5 (red) after price action completed an ABC (purple) within wave 4 (red).
On the 1 hour chart, price action has reached the -27.2% Fibonacci target after bouncing at the 38.2% Fib and 144 ema close (green box).
- A bullish breakout (green arrow) is aiming for the -61.8% Fibonacci target.
- A bearish bounce (orange arrow) should see support at the previous top (blue arrow).
- A bull flag (grey arrows) could indicate a continuation of the uptrend.
All of the Fibonacci levels are expected to act as support (green circles), in case price does retrace lower. Only a deeper retracement places it on hold (yellow & red).
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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