GBP/USD Bullish Retracement within Bearish Trend Aims at 1.36

Květen 14, 2018 11:41


4 hour

The GBP/USD is building a consolidation pattern after a strong bearish impulse. A bearish breakout could indicate a downtrend continuation within wave 5 (purple) towards the Fibonacci targets whereas a bullish breakout could confirm the completion of wave 5 of wave 1 (pink) at the most recent low. 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).

1 hour

The GBP/USD could still be in an expanded wave 4 (green) but price should stay below the 50% Fibonacci 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.

Chris Svorcik

P.S. Don't forget to follow Admiral Markets on Facebook – or @AdmiralMarkets on Twitter – for the latest market updates.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.