GBP/USD bulls regain control and aim at 1.3040 and 1.3150

Chris Svorcik FS method

The GBP/USD is building a well balanced uptrend channel. The bulls took over control when price broke through the resistance zone (dotted orange) and 144 ema. But can they push price action up higher?

Price Charts and Technical Analysis

The GBP/USD have the upper hand at the moment. And they are expected to keep it. A break above the resistance Fractal (red box) confirms the uptrend continuation. The main target is the long-term moving average and 38.2% Fibonacci retracement level of the 4 hour chart at 1.3040.

But price action could extend to higher levels. Especially if price action is able to show a bull flag pattern. Then the next breakout could take price to the -27.2% Fibonacci target and the Wizz 6 level. A break above that could even create an impulse towards the -61.8% Fibonacci target and Wizz 7 level at around 1.3150, which is where a larger retracement could take place.

The downside is only likely if price is able to break below the broken tops and support Fractals (blue box). The main target is then the 78.63% Fib level, which could easily be a bouncing spot. Only a break below the 100% Fib invalidates the bullish outlook. For the moment, the wave patterns suggest a completed ABC (pink) within wave A (purple) and a current wave B-C (purple) pattern.

Our own Elliott Wave software (see image below) already confirmed the bullish trend since the purple vertical line. The broken Fractals were a key confirmation of the upside (blue box). Now there seems to be more space to the upside (green boxes) than downside (red boxes - boxes were manually added in the image).

The analysis has been done with the ecs.SWAT method and ebook.

Author

Chris Svorcik

FS method

Chris Svorcik is a trader, analyst, and educator with over 15 years of experience in financial markets, specializing in moving averages, market structure, and price patterns.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.