Dear traders, the GBP/USD made a lower high after showing bullish momentum. Can the Cable make one more rally within the range?
4 hour chart
The GBP/USD price action remains choppy. The trend lines indicate the lack of a trend. But the bullish impulse could be labelled as a wave 1 (green) after price action completed a potential bearish wave C (orange). This is invalidated (red x) if price is able to break below the 100% Fib level. A break above the resistance levels (red) could indicate a move up to 1.31 or 1.3150 and the next resistance zone (red).
1 hour chart
The GBP/USD is showing a potential bullish impulse as a wave 1 (green). But the wave pattern can also be a wave A for a larger ABC pattern. The key levels remains the bottom at 1.2850 for a bearish breakout and 1.30 resistance for a bullish breakout.
The analysis has been done with the help of SWAT method (simple wave analysis and trading)
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This article was originally posted on FX Empire
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