the GBP/USD bearish decline has managed to reach the round psychological support level at 1.30, which has provided a bounce as expected. Will the Cable reverse?
The GBP/USD is likely to use the 1.30 support zone as a strong bouncing spot for more upside. The expected wave outlook is an ABCDE triangle (green) pattern, which means that price could move up al the way to the 61.8-78.6% Fib zone of wave B. A break below 1.30 and the 50% Fib makes the wave 4 (blue) less likely (red x) and a bearish reversal becomes the main scenario.
The GBP/USD seems to have completed 5 bearish waves (dark red) within wave C (orange) of a wave A (green). A bullish breakout above the resistance (red) of the bearish channel could confirm (green check) the ABC (orange) within the wave B (green) whereas a bearish breakout (orange dotted arrow) would make a trend change (red x) more likely.
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