the GBP/USD bullish breakout managed to reach the previous top… But ultimately reversed at the 100% Fibonacci level. What is the next expected price swing?
The GBP/USD seems to have completed 5 waves down (dark red), which could be part of a wave A (green) of a larger zigzag correction. The ABC (green) zigzag is most likely extending the WXY (blue) corrective pattern. A bullish breakout above resistance (red) would confirm a bullish swing and potential ABC up within wave B (green).
A break above the 100% Fibonacci level of wave B vs A invalidates the ABC, whereas a bounce at the Fibs and break below the support (blue) confirm (green check) it. A bearish continuation is aiming for the Fibonacci levels of wave Y vs W. The main target is the 100% Fibonacci level (red circle) but price can fall short or extend beyond this level too.
The analysis has been done with SWAT method (simple wave analysis and trading).
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