? GBP/USD Bearish Breakout Challenges 1.30 and Key Support Line ?

2 min read

Hi traders,

The GBP/USD broke below the bottom (dotted blue) and is now testing the critical support trend line (blue), which is connecting multiple bottoms. A bearish breakout could start a bearish wave 3 (purple).


4 hour

The GBP/USD might be starting a wave 3 if price breaks below the support line, but a failure to break could indicate a bearish ABC pattern instead and could lead to an expanded wave 2 (purple) correction.

1 hour

The GBP/USD is either in a wave 3 (green) or an alternative wave C, which depends on how far price falls and how deep it retraces. Keep in mind that the wave 4 (green) should not retrace into the price territory of wave 1 (green). Price could fall towards the Fibonacci targets of wave 3 (green) if price manages to push through the round level of 1.30. Eventually price is expected to test the Fibonacci levels of wave 4 (green).

Good trading,
Chris Svorcik
Elite CurrenSea

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