the GBP/USD broke above the key resistance level at 1.25. The bulls remain in control and could continue higher after a pullback.
The GBP/USD is building a slight rising wedge reversal chart pattern. This could indicate the end of a wave 5 (orange). There could be a trend continuation possible if the bullish swing completed a larger wave 3 (green). In that case, price might make a shallow pullback within a wave 4 (green), which usually respects the 23.6%, 38.2% or 50% Fibonacci support zone. A break below the 61.8% Fib of wave 4 vs 3 invalidates (red x) the current wave outlook and indicates bearishness.
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.