GBP/USD Downtrend Pauzes for Wave-4 at 1.25 Support

Chris Svorcik Elite CurrenSea

GBP/USD downtrend managed to break below the bottom and is now approaching 1.25. Will the downtrend manage to break the round psychological support level?

GBP/USD

4 hour

The current wave patterns on the GBP/USD are suggesting a downtrend continuation but this wave outlook is dependent on how price will respond to the larger daily support level around 1.2420. For the moment bearish pressure is likely to send price lower to test that daily support zone. This remains the most probable situation as long as price stays below the resistance area (dark red).

1 hour

The GBP/USD seems to have completed a bearish wave 3 (orange) momentum. The current bullish price swing could be a wave 4 (orange) retracement as long as price stays below the Fibonacci levels of wave 4 vs 3. The two most likely scenarios are that price makes a pullback up to the 38.2% Fibonacci or goes sideways (corrective pattern) and then breaks lower.

The analysis has been done with the CAMMACD.MTF template.

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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.

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