the GBP/USD bullish breakout of the triangle chart pattern failed and turned out to be a false breakout. What is the next price swing for the Cable now that the bulls have lost control?
The GBP/USD made a picture perfect ABCDE triangle chart pattern and price action moved almost exactly as our wave patterns expected. The ABCDE were completed and a strong push up seemed to confirm the bullish wave 1. With more than 10 correct analyses in row though, 1 incorrect is I guess a question of time. The breakout turned out to be a false one and price has been falling quickly instead. It seems that Coronavirus is pushing the USD up. That means that the GBP/USD could now be building a complex WXY (green) correction instead. The bearish breakout below the support trend line (dotted blue) could indicate a decline towards the Fibonacci levels of wave 4 vs 3.
The GBP/USD seems to be building a bearish 5 wave pattern (dark red). Price could still be pushing lower within the wave 5 or eventually build a bullish ABC correction within wave B (orange). Price is expected to turn back down without breaking the top and 100% Fib because that would invalidate (red x) the ABC zigzag.
The analysis has been done with SWAT method (simple wave analysis and trading).
For more daily technical and wave analysis and updates, sign-up up to our newsletter.