the GBP/USD bullish momentum pushed again for a new high yesterday. Will the bulls keep control despite the Fibonacci resistance levels of wave 4 (purple)?
The GBP/USD long-term direction is at the moment heavily dependent on the Brexit negotiations taking place between the UK and EU. A Brexit deal could send the GBP/USD towards the 78.6% Fibonacci level and higher with a natural resistance spot at the 1.30 round level. A failure to find a deal could indicate the end of the wave C (blue) and a bearish retracement back down.
The GBP/USD is testing the support trend lines (blue) and Fibonacci retracement support levels. A bullish bounce could indicate another wave 4 (orange) and a potential wave 5 (orange) if price manages to break above the resistance trend line (red). The main target is the 78.6% Fib. A bearish breakout below the 61.8% Fibonacci level, however, could indicate a larger bearish reversal.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.