the GBP/USD has made another bullish push higher as expected but price has now arrived at a strong 1.25 resistance zone. A bearish reversal is now likely, although the price action will depend on the US and UK interest rate decisions on Wednesday 18 September and Thursday 19 September.
The GBP/USD seems to have completed a wave 5 (green), which could be part of a larger ABC (blue) correction of wave 4 (purple). In any case, a divergence pattern (dotted purple line) plus the round 1.25 level could cap a bullish continuation and in fact, send the GBP/USD lower if price is able to break below the support trend lines.
The GBP/USD seems to have completed its 5 wave (orange) extension of wave 5 (green) after completing a deep wave 4 (orange) retracement at the 61.8% Fibonacci level. The Cable has now reached a reversal territory and could make a move lower if price breaks the support (blue) of the channel.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.