the GBP/USD failed to break above the key round resistance level of 1.30. Will the uptrend prevail or will a larger reversal finally take place?
The GBP/USD long-term direction remains vulnerable to Brexit talks between the UK and EU. The current 1.30 resistance level proved to strong to break, despite the large and impulsive uptrend via waves 5 (green). The current structure indicates large volatility and price instability between the support at 1.2750 and resistance at 1.30. The best approach could be to wait for a clear breakout above the resistance (red) or below support (blue). Waiting for strong breakout candles helps traders avoid false breakouts.
The GBP/USD choppy price action is indicating an indecision at the moment. Neither the bears or the bulls have adequate control and price will need to break the support or resistance barriers before a larger price movement could take place. An upside break aims for the Fibonacci levels of wave C vs A whereas a downside break aims for the next round level at 1.25. The analysis has been generated with the help of ecs.SWAT – my propriatory method.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.