GBP/USD Bullish ABC Pattern Hits Resistance Trend Line
4 hour
Source: Admiral Markets MT5 with MT5SE Add-on GBP/USD motive wave
The GBP/USD remains indecisive at the moment as the long price stays between the triangle chart pattern which is indicated by the support (blue), and the resistance (red) trend lines. A bearish breakout below the support trend line (blue) could indicate a downtrend continuation within wave 5, but could also be part of an extended wave WXY (blue) within wave 4 (purple). A bullish bounce at support could indicate an immediate wave Y (blue), which could see the price move up to the 50% Fibonacci retracement level.
1 hour
Source: Admiral Markets MT5 with MT5SE Add-on GBP/USD motive wave
The GBP/USD alternative is a potential bullish 5 wave (light blue), although this scenario is starting to become less likely due to the slow and choppy price action seen in the ABC (orange) within wave X (green). The next breakout above or below the support and resistance trend lines is key for the bullish or bearish direction.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.