〽️ GBP/USD Bounce and Break Confirms Bearish Wave C 〽
Hi traders,
The GBP/USD broke the support trend line (dotted blue) of the mini triangle pattern and made a bearish breakout. What’s next?
GBP/USD
4 hour
The bearish price action seems to be relatively slow and corrective, which could indicate that the current WXY (purple) wave pattern is indeed correct. If price is indeed in a wave X (purple) now, then price is expected to bounce at the Fibonacci support levels of wave W vs X and make a new bullish rally. Strong bearish momentum could change the expected wave patterns however.
1 hour
The GBP/USD indeed bounced at the Fibonacci resistance retracement levels of wave B vs A. The bearish turn around also caused price to break below the support trendlines. Price might now be building a 5 wave pattern but in that case price should not retrace back into wave 1 (red horizontal line). A break above the resistance trend lines could indicate a bullish reversal.
Good trading,
Chris Svorcik
Elite CurrenSea
