Hi traders,
the GBP/USD news events on Thursday had a minor impact on the price action of the 4 hour chart. Eventually price bounced at the resistance trend line (red) and tried to break below the support trend line (green) but failed. The downtrend however remains intact.
The downtrend is still intact and a 2nd break below support could see price fall towards the Fibonacci targets of wave 5 (purple). A bullish reversal would only become more likely if price is able to break above the previous tops which could indicate the completion of the wave 1 (pink) and the start of the wave 2 (pink).
The GBP/USD still respected the Fibonacci levels of wave 4 (green) despite the volatile news events on the GBP. Price made a first attempt to break support but failed to close strongly below 1.35. Price will need to break above the resistance (red) or below the support (green) trend lines before a next impulsive price action can be expected.
Good trading,
Chris Svorcik
Elite CurrenSea
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