The GBP/USD reached the 1.2825 target and could extend its bearish momentum towards the round level of 1.2750. Price could either continue immediately or make a light pullback towards the 1.29 resistance zone. Any bullish price action, however, is expected to be capped and find a resistance spot for a new lower low, which could confirm the wave 3 (blue) pattern.

remains in an indecisive spot from a wave perspective. The main aspect to keep an eye on is whether price bounces or breaks at the top (red) resistance line of the downtrend channel. A bearish continuation, especially below the 100% level, could indicate an impulsive wave 3 pattern whereas a reversal could indicate a bullish wave count instead.

- advertisement -

The GBP/USD completed an extended wave 5 (dark red) with 5 extra waves (grey) and now price could be ready for a bullish ABC (dark red) correction within wave 4 (orange). The main resistance zone is the area around the 23.6-50%Fibonacci levels near 1.2875-1.2935. The GBP/USD could also make a bearish breakout if it’s able to push below the support trend line (blue).


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.