GBP/USD completing ABCDE triangle in wave 4 pattern
The GBP/USD completed an ABCDE triangle pattern (orange). This could mark the end of the wave 4 (purple) pullback and the restart of the uptrend. What is the next target?
Price Charts and Technical Analysis
The GBP/USD is aiming for the next target at 1.3225-1.3250, which is a round psychological level. Currently, price is testing and respecting the Wizz 9 level which is a major target zone (without moving back to the 144 ema). But the GBP crosses are known for their large price movements. A break above the Wizz 9 is certainly a possibility for the GU. The Wizz 10 level is up at 1.35.
The GBP/USD is now probably building a wave 1-2 (orange) pattern. Price is respecting the 21 ema zone at higher levels (green boxes). This indicates that buyers are stepping in at higher price levels, which makes a bullish breakout more likely. The two previous breaks below the 21 ema zone were not able to push lower and found support quickly. Even if price action were to break south, the structure of the chart remains bullish as price stays above the 144 ema.
The analysis has been done with the ecs.SWAT method and ebook.
Reprinted from FXStreet，the copyright all reserved by the original author.
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