GBP/USD Bearish Retrace Losing Steam at 78.6% Fib at 1.28

Dear traders, the GBP/USD is building a downtrend channel. But price action is now back at a key support zone. Will price action make a bullish bounce or bearish break?

1 hour chart

The GBP/USD chart shows 2 different wave outlooks: a bullish scenario in green and a bearish one in blue. It is unclear which pattern has a better chance. A bullish bounce seems likely in both cases – either for a wave B (blue) or for the start of the wave 3 after finishing wave 1-2 (green). A break below the bottom invalidates (red x) the wave 2 (green). A break above the trend line (red) confirms (green check) the breakout.

15 min chart

The GBP/USD seems to have completed the bearish swing. Either via an ABC (green) of wave 2 (green). Or of wave 5 (blue) of wave A (blue). Price needs to break above the resistance trend lines (red) for a rally higher.

Good trading,

Chris Svorcik

The analysis has been done with the help of SWAT method (simple wave analysis and trading)

For more daily technical and wave analysis and updates, sign-up up to our newsletter