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.
Author
Chris Svorcik
Elite CurrenSea
Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.
