GBP/USD Bearish Momentum in Wave 3 Aims at 1.20 Target

Dear traders, the GBP/USD is showing very strong bearish momentum. A bearish continuation is likely to aim for the 1.20 round level.

1 hour chart

The GBP/USD is pulling the 21 ema zone away from the 144 ema. Also, swat.MOMENTUM (pink/purple) have appeared and confirm the impulse. This is likely to create a bearish wave 3 (purple). The current pullback is therefore probably a wave 4 (purple). This remains valid as long as price stays below the 144 ema and Wizz 6 level. A break above it invalidates (red x) the bearish outlook.

A bearish pullback and breakout could confirm (green check) the continuation towards the Wizz 8 target and 1.20 round level. This support zone could in turn create a large bullish bounce (green arrow).

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up up to our newsletter