the GBP/USD is building a bullish channel after breaking above the resistance line and the moving averages. Can the Cable keep the uptrend going?
The GBP/USD needs to break above the local resistance line (orange) to confirm the uptrend continuation (green arrows). A break above 1.31 and 1.3250 makes a wave 3 (green) pattern likely (green checks). A push below the bottom invalidates (red x) the bullish wave outlook and indicates a downtrend.
The GBP/USD made a bullish bounce at the Fibonacci retracement levels of wave 4 vs 3. This could confirm the wave 4 (orange) retracement. A break above the resistance (orange) indicates a push higher (green check) towards the Fibonacci targets. However, a break below the 61.8% Fib and 144 ema close invalidates (red x) the bullish pattern.
The analysis has been done with SWAT method (simple wave analysis and trading).
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