the GBP/USD downtrend managed to break below the bottom and is now approaching 1.25. Will the downtrend manage to break the round psychological support level?
Join ecs.LIVE – our premium channel with live webinars, analysis, and setups – with our special summer offer this week till Friday 21 June 11:59pm EST and get more than 500 euro in extra freebies!
The current wave patterns on the GBP/USD are suggesting a downtrend continuation but this wave outlook is dependent on how price will respond to the larger daily support level around 1.2420. For the moment bearish pressure is likely to send price lower to test that daily support zone. This remains the most probable situation as long as price stays below the resistance area (dark red).
The GBP/USD seems to have completed a bearish wave 3 (orange) momentum. The current bullish price swing could be a wave 4 (orange) retracement as long as price stays below the Fibonacci levels of wave 4 vs 3. The two most likely scenarios are that price makes a pullback up to the 38.2% Fibonacci or goes sideways (corrective pattern) and then breaks lower.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.