Dear traders,
The GBP/USD broke below the rising wedge… but price action failed to reverse.
Instead, price action bounced at the long-term moving average and support zone (blue box) again.
The bulls are back in control (as mentioned in the EU-GU video) and looking for a bullish breakout now.
The GBP/USD quickly tested the 21 ema zone and bounced back upwards (green circle). Price is now testing a key decision zone, which are the resistance trend lines (orange).
The bullish price action is part of a wave 5 (red) after price action completed an ABC (purple) within wave 4 (red).
On the 1 hour chart, price action has reached the -27.2% Fibonacci target after bouncing at the 38.2% Fib and 144 ema close (green box).
All of the Fibonacci levels are expected to act as support (green circles), in case price does retrace lower. Only a deeper retracement places it on hold (yellow & red).
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter.
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