GBP/USD Wave C Bounce at 144 ema and 1.30 Support

The GBP/USD completed the bearish wave C (pink) as indicated in yesterday’s analysis. Can the Cable make the bullish rally to complete wave 5 (purple)?

Price Charts and Technical Analysis

The GBP/USD made a bearish bounce as part of wave B (pink) and a bullish bounce at the end of wave C as expected. Usually speaking, the analysis focuses on a different currency pair or financial instrument each trading day. But today’s wave analysis is again on the GBP/USD to show how understanding wave patterns can help determine expected price swings and the potential bounce spots. Yesterday’s analysis helped identify the wave B and C (pink).

In today’s analysis, the main consideration is whether price is now in a wave 1-2 (pink) or in a complex WXY correction of wave 4 (purple). A wave 1-2 (pink) within wave 5 (purple) could see a bounce at support (green box) for an inverted head and shoulders pattern. Also a bullish breakout would confirm it. A break below the support zone (blue box) indicates either a complex correction in wave 4 with the 50% Fib (purple box) playing a key role or a reversal (red x).

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

For a look at all of today’s economic events, check out our economic calendar.