GBP/USD Drops 1,000 Pips and Reaches 1.22 support

Dear traders, the GBP/USD is showing massive bearish momentum. Price has fallen from 1.32 to 1.22 for a 1,000 pip drop. What is next for the currency pair with the nickname Cable?

4 hour chart

The GBP/USD is now testing the Fibonacci retracement levels of the wave B vs A (purple). The deep Fib levels such as the 78.6-88.6% are the last support levels. A break below the 100% Fib places price in a downtrend. Whereas a bullish bounce could indicate the end of the ABC (green) and a potential recovery.

1 hour chart

The GBP/USD is building a falling wedge chart pattern. Usually this pattern indicates a bullish reversal. But both the support (blue) and resistance (red) trend lines are key because they indicate a breakout. A break above the 21 ema high could confirm the reversal.

Good trading,

Chris Svorcik

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

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