The GBP/USD was unable to break below the support zone (green lines) and made a bullish breakout above the resistance line (red) instead. What’s next for the Cable?
The GBP/USD made a bearish ABC (orange) pattern within the wave X (green), which indicates a more complex WXY (green) correction. Within the wave Y (green), price seems to be building an ABC (orange) pattern. Currently, price could be in a wave 3-4 (brown) as long as price respects the Fibonacci levels of wave 4 vs 3. The main target is the 61.8% Fib at 1.25.
A break above the 1.25 round level would indicate a turn of events and the bulls would be regaining control. This is especially true if a corrective pattern is visible after strong bullish momentum, which would make a reversal more likely.
