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GBP/USD Wave 3 Pattern Confirms Bullish Momentum

By:
Chris Svorcik
Published: Aug 19, 2020, 07:45 UTC

GBP/USD made a bullish breakout as expected in our previous wave analysis. The bullish price action has reached the first target at 1.3250.

GBP/USD Wave 3 Pattern Confirms Bullish Momentum

The GBP/USD made a bullish breakout as expected in our previous wave analysis. The bullish price action has reached the first target at 1.3250. Can the GU, aka the Cable, continue with its bullish momentum?

Price Charts and Technical Analysis

GBP/USD 4 hour chart

The GBP/USD seems to be building a wave 3 (orange). The wave 3 could still be in development – if price action pushes aboves the candle highs (purple box). Eventually a shallow pullback should take place as part of wave 4. A bullish bounce could occur at the 21 ema zone.

GBP/USD 4 hour chart

The GBP/USD next target is aiming at 1.35. Only a strong bearish retracement invalidates (red x) the wave 3-4 pattern. Otherwise, price action has completed the wave 4 (blue) triangle pattern as expected and a restart of the uptrend is in full swing.

GBP/USD 4 hour chart

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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About the Author

Chris Svorcikcontributor

Chris Svorcik is co-founder, trader, and analyst with Elite CurrenSea (www.EliteCurrenSea.com) since 2014.

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