GBP/USD Price Swings and Waves Before US Elections

The GBP/USD made a bearish reversal at the 61.8% Fibonacci retracement. The uptrend channel is also looking corrective and choppy.

This article explains why the bears are expected to regain control soon – with just weeks left in the final stages of the Brexit development and just before the US Presidential elections.

Price Charts and Technical Analysis

The GBP/USD is expected to turn bearish soon – despite the presence of the uptrend channel. The Cable could find heavy resistance at the 78.6% Fibonacci retracement level – if price action reaches that high. Or the bears could break below the support trend line (blue) for a bearish breakout.

The main targets of the bearish breakout are the 50% and 61.8% Fibonacci retracement levels of wave B vs A (red circles). This price swing could complete a bearish wave C (purple) of a larger wave B (red).

On the 4 hour chart, price action is testing the support trend lines (green) and support zone (blue box) again. This is a critical decision zone for either a bullish bounce or bearish breakout, which seems to be 50-50% at the moment.

A break above the resistance (green arrow) could start one more rally towards the next 78.6% Fib. But a bearish breakout (orange arrows) probably confirms the end of the wave C (pink) in wave B (purple).

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 to our newsletter

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