☝️ GBP/USD Offers False Bearish Breakout Below 50% Fibonacci? ☝️

3 min read

The GBP/USD broke below the support trend line (dotted blue) and 50% Fibonacci retracement level, which could indicate the start of a bearish trend. However, the 61.8% Fib could still be a last beacon of hope for the bulls and provide support. A break below the green support line makes the current wave 4 pattern unlikely. The bearish alternative could be a potential wave 3 if the momentum is strong enough.

GBP/USD

4 hour

1 hour

The GBP/USD broke below the consolidation pattern rather than using it as a base for a new bullish impulse. For the bearish trend to find more momentum, price would need to decisively break below 1.3950 and show bear flag patterns. A break above the orange resistance trend line could indicate weakness in the bearish move and potentially a false bearish breakout.

USD/JPY

4 hour

The USD/JPY seems to be building a larger wave 4 correction (blue) unless price manages to break above the shallow Fib levels such as the 38.2-50% Fibs. A bullish break above those levels would change the wave perspective to bullish whereas a break below support (blue) could see a bearish continuation.

1 hour

The USD/JPY seems to be building a bullish push towards the Fib levels of wave C (brown) as long as price stays below the 50% Fib at 107.86 – 108.

Good trading,

Chris Svorcik
Elite CurrenSea

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