The GBP/USD broke below the rising wedge but price action failed to reverse. The bulls are back in control and looking for a bullish breakout now.
The GBP/USD broke below the rising wedge… but price action failed to reverse.
Instead, price action bounced at the long-term moving average and support zone (blue box) again.
The bulls are back in control (as mentioned in the EU-GU video) and looking for a bullish breakout now.
The GBP/USD quickly tested the 21 ema zone and bounced back upwards (green circle). Price is now testing a key decision zone, which are the resistance trend lines (orange).
The bullish price action is part of a wave 5 (red) after price action completed an ABC (purple) within wave 4 (red).
On the 1 hour chart, price action has reached the -27.2% Fibonacci target after bouncing at the 38.2% Fib and 144 ema close (green box).
All of the Fibonacci levels are expected to act as support (green circles), in case price does retrace lower. Only a deeper retracement places it on hold (yellow & red).
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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Chris Svorcik is co-founder, trader, and analyst with Elite CurrenSea (www.EliteCurrenSea.com) since 2014.