GBP/USD bullish ABC zigzag aiming at Fibonacci resistance
|-
GBP/USD has made a bullish bounce at the 144-233 ema support zone. The higher low and higher high have launched a bullish breakout.
-
The GBP/USD seems to have completed multiple wave 5s at the recent top. The 5 wave decline (purple) only supports this wave outlook.
-
On the 1 hour chart, price completed a 5 wave pattern (purple) in wave A (red). Now a bullish ABC pattern could take the price up higher.
The bullish trend channel is now the key factor for more upside. Let’s review the 4 and 1 hour charts.
Price charts and technical analysis
The GBP/USD seems to have completed multiple wave 5s at the recent top. The 5 wave decline (purple) only supports this wave outlook. Let’s review the key zones and patterns:
-
The bearish 5 waves completed a wave A (red).
-
A larger bearish ABC (red) pattern is expected.
-
The push up is probably an ABC (purple) within wave B (red).
-
This ABC pattern remains valid as long as price stays below the top (red circle).
-
A break (dotted orange) below the support line (green) of the uptrend channel indicates an early bearish bounce at the 38.2% Fib (yellow circle).
-
A break above the 38.2% Fib confirms a deeper bullish break towards the Fibonacci retracement levels.
On the 1 hour chart, price completed a 5 wave pattern (purple) in wave A (red). Now a bullish ABC pattern could take the price up higher.
-
A bearish breakout below the support line (green) indicates a deeper retracement (yellow circle).
-
A break below the bottom indicates that the ABC (purple) pattern is completed sooner than expected (red circle).
-
A bounce at the support zone (green box) indicates a push up towards the Fibonacci confluence.
The analysis has been done with the ecs.SWAT method and ebook.
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.