GBP/USD Bullish Break Above Key 1.25 Resistance

Dear traders, the GBP/USD broke above the key resistance level at 1.25. The bulls remain in control and could continue higher after a pullback.

1 hour chart

The GBP/USD is building a slight rising wedge reversal chart pattern. This could indicate the end of a wave 5 (orange). There could be a trend continuation possible if the bullish swing completed a larger wave 3 (green). In that case, price might make a shallow pullback within a wave 4 (green), which usually respects the 23.6%, 38.2% or 50% Fibonacci support zone. A break below the 61.8% Fib of wave 4 vs 3 invalidates (red x) the current wave outlook and indicates bearishness.

Good trading,

Chris Svorcik

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

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