GBP/USD Bearish Break Tests 61.8% Fibonacci Support

Chris Svorcik Elite CurrenSea

Hi traders,

the GBP/USD made another bearish bounce at the resistance trend line (red), which is expanding the large sideways correction. The GBP/USD must either break support (green) or the resistance lines (red).

Check out for regular updates, webinars, analysis, and setups in the Forex market viaecs.LIVE.

GBP/USD

4 hour

The GBP/USD bullish breakout is still the most likely scenario. If the current wave pattern is valid, then price has completed a wave 4 (green) and a bullish breakout could confirm a wave 5 (green) which seems ready to aim for the 50% Fibonacci retracement level of wave 4 vs 3.

1 hour

The GBP/USD broke below the support trend line (blue) and expanded the wave C (green) correction towards the 61.8% Fibonacci retracement level of wave 2 vs 1. The wave 1-2 (orange) wave outlook is invalidated only if price is able to break below the bottom and 100% Fibonacci level. The wave 3 (orange) pattern requires a strong and impulsive breakout otherwise the range and consolidation might last longer.

Good trading,

Chris Svorcik

Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.