GBP/USD Must break 1..30 or 1.32

Chris Svorcik Elite CurrenSea

The GBP/USD showed strong bullish price action on Friday but it did not invalidate the wave 2 (blue) pattern as price failed to break above the 100% Fibonacci level. What is the next step for the Cable?

GBP/USD

4 hour

The GBP/USD could still be in the wave 1-2 (blue) pattern but this outlook has become less probable after the large spike up. The alternative is a bullish wave 1-2 (red) pattern after price completed a bearish ABC (red) pattern. The correct wave pattern will depend on the breakout of the trend channel. A bullish break above the resistance (red) indicates an uptrend whereas a break below the support (blue) indicates a downtrend.

1 hour

The GBP/USD could have completed a potential bullish ABC (green) pattern if price manages to make a wave 1-2 (green) pattern and bearish reversal in this zone. However, a break above the 1.3186 indicates that price probably made 5 waves up (rather than an ABC) and also means that price is undergoing a trend change and invalidating both waves 1-2 (blue/green). For the moment, the GBP/USD remains in a difficult spot and needs to move substantially lower or higher to confirm/invalidate one of the wave patterns.

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

For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.

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 holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.