HomeContributorsTechnical AnalysisGBP/USD Downtrend Builds Corrective Wave 4 Pattern

GBP/USD Downtrend Builds Corrective Wave 4 Pattern

GBP/USD continued with the downtrend and made a lower low after breaking below the support trend line (dotted blue).Price is now facing a new critical support trend line (blue).

GBP/USD will probably fall towards the Fibonacci targets but price could also potentially bounce at the support trend line if it is indeed completing a wave 1 (purple).

GBP/USD has probably completed a bearish wave 3 (green) and is now making a retracement within wave 4 (green). A break above the resistance trend line could indicate an ABC pattern in wave 4 whereas a bearish breakout below the support trend line (blue) could see price move towards the Fibonacci targets.

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