GBP/USD Bounce and Break Confirms Bearish Wave C
|Meta description: GBP/USD broke the support trend line (dotted blue) of the mini triangle pattern and made a bearish breakout within the bearish wave C.
GBP/USD
4 hour
The GBP/USDbroke the support trend line (dotted blue) of the mini triangle pattern and made a bearish breakout. What’s next?
The bearish price action seems to be relatively slow and corrective, which could indicate that the current WXY (purple) wave pattern is indeed correct. If price is indeed in a wave X (purple) now, then price is expected to bounce at the Fibonacci support levels of wave W vs X and make a new bullish rally. Strong bearish momentum could change the expected wave patterns however.
1 hour
The GBP/USD indeed bounced at the Fibonacci resistance retracement levels of wave B vs A. The bearish turn around also caused price to break below the support trendlines. Price might now be building a 5 wave pattern but in that case price should not retrace back into wave 1 (red horizontal line). A break above the resistance trend lines could indicate a bullish reversal.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.