? GBP/USD Bearish ABC Bounces at 50% and 1.2270 Support ?

3 min read

Hi traders,

the GBP/USD seems to have completed a bearish ABC (orange) zigzag pattern at the 50% Fibonacci support level (of wave B vsA). But price will need to break above the resistance trend line (red) before a bullish breakout is likely.

GBP/USD

4 hour

The GBP/USD could build a bullish ABC pattern as part of a larger WXY (green) correction of wave B (blue). The key levels to keep an eye on are the resistance trend lines (red) and Fibonacci levels of wave X vs W and B vs A. As long as price stays below the 100% Fib of wave X vs W, a bullish ABC within wave X is still valid. An immediate breakout below the 50% Fib of wave B vs A could indicate a deeper wave  C (orange).

1 hour

The GBP/USD could have completed a 5th wave (dark red) of bearish wave C (orange) at 1.2270 support zone. This becomes more likely if price is able to confirm the bullish wave C (orange) with a bull breakout towards the Fibonacci targets. A bearish breakout below the support line (blue) indicates an expanded wave 5 (dark red) and wave C (orange).

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

Good trading,
Chris Svorcik
Elite CurrenSea

Leave a Reply

avatar

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of

🍿️ Discover your path to a 100% yearly returns over the convos with Chris Svorcik!

X