GBP/USD Tests Wave 4 Resistance Fibs Levels at 1.36

GBP/USD

4 hour

The GBP/USD is making a bullish bounce after failing to break below the support trend line (blue). The trend however remains bearish and the current rally could only be a retracement. Price action stays bearish as long as price remains below the resistance trend line (red) but a bullish break above the resistance would indicate the completion of wave 1 (pink) and the start of wave 2.

1 hour

The GBP/USD could be retracing back to the Fibonacci levels of wave 4 (green) which could act as a reversal spot for a downtrend continuation. Price has probably completed the wave 4-5 (green) correction if price breaks above the 61.8% Fibonacci retracement level. Otherwise price is probably still expanding the wave 4 (green) correction.

Good trading,

Chris Svorcik

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This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.