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

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)

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This article was originally posted on FX Empire

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