GBP/USD Lengthy Consolidation Zone Awaiting New Critical Breakout

GBP/USD

4 hour

The GBP/USD is moving sideways at the 50% Fibonacci level of potential wave 4 (green) retracement. The support and resistance level of this consolidation zone are key zones for a bullish or bearish breakout. A bearish break could indicate that the current range is a wave B or 2 and increases the chance of a bearish reversal whereas a bullish bounce could see price move up within the trend.

1 hour

The GBP/USD wave pattern is fragile at this moment and will depend on the breakout direction above or below of the consolidation pattern. A break below the 50 and 61.8% Fibonacci level makes a wave 4 (green) unlikely. A bullish break, however, could perhaps start a larger bullish momentum as price might be building a wave 3 (green).

Good trading,

Chris Svorcik

P.S. Don't forget to follow Admiral Markets on Facebook – or @AdmiralMarkets on Twitter – for the latest market updates.