GBP/USD roller coaster part of wave 4 pullback in uptrend
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GBP/USD is creating an increased price volatility between 1.3205 support and 1.35 resistance zones. That said, price action remains in a solid uptrend
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What is next for the Cable? How can the Elliott Wave and chart patterns help our analysis? Let’s review them all.
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The main question is whether the smaller wave 5 (pink) has already been completed. And for the moment, the answer seems to be no.
The GBP/USD is creating an increased price volatility between 1.3205 support and 1.35 resistance zones. That said, price action remains in a solid uptrend when comparing the moving averages (21 ema above 144 ema above 610).
Price Charts and Technical Analysis
The GBP/USD is building a bullish 5 wave pattern (purple) after a long-term downtrend. The wave 5 could complete a larger wave A (blue) of an ABC (blue).
Because the recent ups and downs are probably part of a wave 4 (pink) retracement. This remains valid as long as price action respects the support zone of the uptrend channel (green).
A break below the support invalidates (red circle) this wave outlook and indicates a deeper bearish retracement. A bullish bounce, however, could indicate one more push up towards the top of the channel around 1.37.
On the 1 hour chart, it is possible to monitor the development of the potential wave 4 (pink). The upside looks like an ABC (orange) that completes wave B (grey).
A bearish breakout could confirm the wave C (grey). The main target zone is the previous bottom (blue box).
A bullish breakout followed by a bull flag and another break upwards would invalidate (red circle) the expected bearish wave C.
The analysis has been done with the ecs.SWAT method and ebook.
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