The GBP/USD broke above the key resistance trend line (dotted orange), which is indicating the potential for a larger bullish breakout from the 23.6% Fib to the 38.2% Fibonacci retracement level at around 1.33.
The GBP/USD bullish breakout invalidated yesterday’s wave pattern. A larger wave 4 (pink) is now the most likely path.
The GBP/USD is probably in a wave 4 at the moment as long as price stays above the 61.8% Fib retracement level. A pullback could see price bounce at the Fibonacci levels of wave 4 vs 3. Once the wave 5 (orange) is completed, price could build an ABC pullback as part of a wave B.
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