Contributors Technical Analysis GBP/USD Breakout Accelerates Bearish Momentum

GBP/USD Breakout Accelerates Bearish Momentum

The GBP/USD broke the support line (dotted blue) of the downtrend channel. The bearish breakout is behaving very impulsively, which indicates that the swing is a potential wave 3 (green). A bearish break could extend the 3rd wave towards the Fibonacci targets of wave 3 vs 1, whereas a bullish retracement could bounce at the resistance of the Fibonacci levels of wave 4 vs 3.

The GBP/USD is building a triangle chart pattern. A bearish breakout could extend the wave 3 (green) to a lower low, and could fall down to the Fibonacci targets. A bullish break is probably limited in its movement, as price is hitting resistance trend lines (orange).

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