UK Markets close in 31 mins

GBP/USD Bullish Reversal after Bouncing at 50% Fibonacci Support

Chris Svorcik

Dear traders, the GBP/USD made a higher low, which could confirm the end of the bearish price swing and wave C (orange). Is the Cable ready for a reversal?

4 hour chart

The GBP/USD has been bearish after the break below support (dotted blue). But price action made a bullish bounce at the 50 Fibonacci of wave 4 vs 3. And price also broke above the resistance trend line (dotted red). A break above the channel could confirm (green check) the bullish price swing and reversal.

1 hour chart

The GBP/USD break below the 100% Fib invalidates (red x) the bullish reversal. Price is now building an ascending wedge chart pattern. A bullish break above resistance (red) could confirm (green check) the move up. A key break will also be a push above 1.30.

Good trading,

Chris Svorcik

The analysis has been done with the help of 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: