the GBP/USD made a bullish bounce at the 50% Fibonacci retracement level of wave B vs A. The direction of the next price swing will depend on the reaction at the resistance trend line (red) and whether price makes a bullish breakout or bearish continuation. Ps. do not forget to check out our upcoming 4x Forex seminars on trading in Europe!
The GBP/USD must break above the resistance trend lines before the end of the wave B (green) and the start of wave C (green) can be confirmed. Otherwise a deeper bearish retracement could take place and price could move lower to test the next Fibonacci retracement level which is the 61.8% Fib.
The GBP/USD might be building a wave 1-2 (orange) but it is too soon to confirm. The wave patterns will depend on the price reaction at the support (green) and resistance (red) lines. At the moment it’s about a 50-50% chance whether price has already completed a bearish ABC (orange) or whether the wave C (orange) will end at a lower point.
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