? USD Nose Dive Lower as Market Fears Coronavirus Outbreak ?

Dear traders,

the GBP/USD is breaking above the resistance trend lines (dotted red) with fierce momentum. The US Dollar is losing its ground due to fears over its economy with the coronavirus spreading.

GBP/USD

4 hour

The GBP/USD momentum is very strong. This makes it likely a wave 3 (blue). The bullish impulse will probably continue to at least 1.3250-75 before any significant pullback will take place. Ultimately the bullish bounce took place the 50% Fibonacci support of wave B vs A at 1.2735.

1 hour

The GBP/USD is showing an aggressive wave 3 (green) and a shallow wave 4 (green) pullback. The bounce at the 23.6% Fibonacci indicates that the bulls are fully in control. A bullish 5 wave pattern is expected to take price up to 1.35 with a pullback at 1.3250-1.33.

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.

Good trading,
Chris Svorcik
Elite CurrenSea