The GBP/USD bullish breakout above resistance (red) confirms (green check) the wave 5 (green) of a larger wave 3 (pink). It also invalidates (red x) the old wave 4 (purple) outlook. A bullish break (green arrows) would usually be aiming at the 61.8% Fibonacci target of wave 5 vs 1+3 at 1.3270. The dotted arrows indicate the alternative path of price if a breakout fails.
The GBP/USD is breaking above the resistance trend line (dotted red) of the uptrend channel. At the moment, the price is likely to test the key resistance level at 1.30, which is a critical decision zone for a bounce or break. A breakout (green arrows) above 1.30 confirms (green check) a full scale uptrend whereas a push below the channel invalidates (red x) impulsive wave outlook.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Price of Gold Fundamental Daily Forecast – Headline Driven Trade Deal Hope Forcing Out Speculative Longs
- EUR/USD Mid-Session Technical Analysis for November 18, 2019
- Germany Narrowly Avoids a Technical Recession
- VIX Warns Of Imminent Market Correction
- GBP/USD Full Steam Ahead with 1.30 Resistance Nearby
- Gold Price Futures (GC) Technical Analysis – Downside Pressure Building; Weakens Under $1460.90, Strengthens Under $1471.00