GBP/USD: Breaks Resistance with Bullish Impulsive Price Action
|Meta description: The GBP/USD did not manage to break below the support trend line and is moving up higher after breaking above the resistance trend line.
GBP/USD
4 hour
The GBP/USD did not manage to break below the support trend line (blue) and is moving up higher after breaking above the resistance trend line (dotted orange).
The GBP/USD is showing bullish momentum but the impulsive price action could be part of a larger wave 4 correction (purple) if price stops and reverses at the 38.2-50% Fibonacci decision zone. A bullish breakout could indicate a change of wave patterns and a new uptrend whereas a break below support (blue) could confirm the wave 4-5 (purple) pattern.
1 hour
The GBP/USDis showing impulsive price action after breaking through the key resistance zone (orange), which is most likely a wave 3 (green). A mild, choppy, and sideways correction could confirm the wave 4 (green) pattern and a bullish breakout could see wave 5 (green arrows).
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