The GBP/USD is showing a bullish breakout above the resistance trend line (dotted red) after a late bullish bounce at the 88.6% Fibonacci retracement level. This could confirm the contracting triangle chart pattern.
4 hour chart
The GBP/USD bullish break (green check) is aiming for the Fibonacci targets of wave C (orange) and wave D (green). A bearish bounce at 1.3160 or 1.3220 could confirm the wave D (green) and indicate a new bearish swing for wave E. A break below the bottom of wave C invalidates (red x) the triangle pattern.
1 hour chart
The GBP/USD showed strong bullish momentum yesterday, which is likely a wave 3 (light green) impulse. The pullback seems to be a wave 4 (light green) after bouncing at the 50% Fibonacci retracement level. A breakout above the resistance (red) confirms (green check) bullish potential whereas a break below the 61.8% Fib invalidates (red x) the wave 4 (green).
The analysis has been done with SWAT method (simple wave analysis and trading)
For more daily technical and wave analysis and updates, sign-up up to our newsletter
This article was originally posted on FX Empire
More From FXEMPIRE:
- The Crypto Daily – Movers and Shakers – 22/01/20
- GBP/USD Daily Forecast – Sterling Probes Trend Channel Resistance
- EUR/USD Daily Forecast – Quiet Day Expected for Euro
- USD/JPY Fundamental Daily Forecast – Light Short-Covering as Safe-Haven Demand Eases
- EOS, Ethereum and Ripple’s XRP – Daily Tech Analysis – 22/01/20
- Risk Sentiment Returns As The S&P 500 Notches Another Record High