? GBP/USD Bearish ABC Pattern Retesting 1.29 Support Zone ?

2 min read

Dear traders,

the GBP/USD is still respecting the wave 4 (orange) pattern at the moment as long as the price stays above the internal support line (green) at 1.29. Will price bounce for wave 5 (orange) or break for an ABC (pink)?

GBP/USD

4 hour

The GBP/USD is building a lengthy bull flag chart pattern (red/blue lines). Price could build an extended wave 4 (green) correction if price breaks support (green) and builds another ABC (pink). A bullish bounce at support (green) could send the pair higher but a breakout above the main resistance (red) at 1.30 is needed to confirm the bullish outlook (green check). A break below the support (blue) invalidates (red x) the bullish pattern.

1 hour

The GBP/USD seems to have completed a bearish ABC (dark red) pattern at the 50% Fibonacci retracement level of wave 4 vs 3 but a bullish breakout (green arrows) is needed to confirm (green check) the upside. A bearish breakout could still test the 61.8% Fibonacci level but a break below that level invalidates (red x) the wave 4 (orange) pattern.

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Good trading,
Chris Svorcik
Elite CurrenSea

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