? GBP/USD Testing 1.2750 Resistance Zone of Wave-4 ?

3 min read

Hi traders,

the GBP/USD is building a bullish wave 4 (green) correction. The main question is whether this wave 4 (green) pattern is already completed or will price move higher to test the 144 ema close first.

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GBP/USD

4 hour

The GBP/USD break below the support trend line (blue) would confirm the end of the wave 4 (green) and the start of the downtrend via wave 5 (green). A push above the resistance trend line (red) is not likely to move far because the 1.2775-1.28 is considered a resistance zone due to the 50% of wave 4. A bearish breakout is aiming for the Fibonacci targets of wave 5 vs 1+3.

1 hour

The GBP/USD could be in a wave 1-2 (orange) pattern as long as price stays below the 100% Fibonacci level. A break below the support trend line (blue) is the key factor for a continuation of the bearish trend and a confirmation of the current wave 1-2 (orange) pattern. Otherwise the wave 4 (green) pattern could still be active and might expand higher first.

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Good trading,
Chris Svorcik
Elite CurrenSea

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Hernando Hincapie
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Hernando Hincapie

Good afternoon, question of a rookie in the waves of Elliott, in the crash of the GBPUSD 1H was not invalidated the count of wave 4 (Green) in the overcoming of the maximum, should be renamed in 127.6 Approximately? corresponding to the candle of 07 / 18Hours ?, and wait for a confirmation for the start of wave 1 (Orange) corresponding to Wave 5 (Green). At this moment it is in a range in 1H and would be the beginning of the wave in its breaking? (Wave 5 Green – Wave 1 Orange). A thousand thanks for your excellent teachings,… Read more »