GBP/USD Faces Key Resistance after 50% Fib Reversal
|The GBP/USD made a bullish bounce at the 50% Fibonacci retracement level of wave B vs A. The direction of the next price swing will depend on the reaction at the resistance trend line (red) and whether price makes a bullish breakout or bearish continuation. Ps. do not forget to check out our upcoming 4x Forex seminars on trading in Europe!
GBP/USD
4 hour
The GBP/USD must break above the resistance trend lines before the end of the wave B (green) and the start of wave C (green) can be confirmed. Otherwise a deeper bearish retracement could take place and price could move lower to test the next Fibonacci retracement level which is the 61.8% Fib.
1 hour
The GBP/USD might be building a wave 1-2 (orange) but it is too soon to confirm. The wave patterns will depend on the price reaction at the support (green) and resistance (red) lines. At the moment it’s about a 50-50% chance whether price has already completed a bearish ABC (orange) or whether the wave C (orange) will end at a lower point.
The analysis has been done with the CAMMACD.MTF template.
Join Elite CurrenSea’s Forex Live Education in upcoming months.
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.