the GBP/USD showed an impulsive bullish breakout above the resistance trend line (dotted red), which could indicate a bullish wave 3 pattern on the 1 hour chart (orange/green). The wave 3, however, becomes less likely if price breaks below the support trend line (blue). Ps. do not forget to check out our upcoming 3x Forex seminars on trading in Europe!
The GBP/USD seems to have completed a wave B (blue) retracement and started a bullish wave C (blue) as long as price does not show strong bearish impulsive price action.
The GBP/USD bearish breakout below the 61.8% Fibonacci level of wave 4 v 3 and the support zone (blue box) could indicate that price has made a bullish ABC pattern rather than a 123 count. A bullish bounce however at the Fibonacci levels of wave 4 vs 3, such as the 38.2%, could confirm a bullish continuation higher towards the Fibonacci targets of wave 3 vs 1.
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