GBP/USD Impulse Breaks Support of Wedge Pattern

Chris Svorcik Elite CurrenSea

Hi traders,

the GBP/USD broke below the key support trend line (dotted green) and 1.2950-1.30 support zone of the descending wedge, which could indicate the start of a bearish breakout.

GBP/USD

4 hour

The GBP/USD seems to be building multiple ABC zigzag patterns (green) which could indicate a potential leading diagonal within wave 1 (purple). For the moment bearish momentum is dominating the chart and a break below the 100% Fibonacci level could indicate a continuation towards the next Fibonacci targets.

1 hour

The GBP/USD bearish breakout made the previous wave 4 pattern unlikely. The current wave outlook favors a bearish count with a potential wave 5 (dark red) within wave 3 (orange) if price manages to break below the support trend line (blue).

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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