Major Break on GBPUSD Confirms More Weakness
Hi traders,
Today let's take a look at GBPUSD and its bearish activity since April of 2017, when a higher degree complex correction found a top. Back then we were tracking a W-X-Y pattern, known also as a double zig-zag which found resistance and the end at the 1.4384 level and since then dropped strongly and sharply below the lower trendline connected from October of 2016. This break and sharp bearish activity is a confirmation that the bigger complex pattern is completed and that a new bearish five-wave cycle can be in progress.
We already see wave 1 of this cycle trading in final stages and can look for support near the 1.302 area from where a new temporary correction as wave 2 can later follow and take price towards the 1.3663 area for a pullback.
Today let's take a look at GBPUSD and its bearish activity since April of 2017, when a higher degree complex correction found a top. Back then we were tracking a W-X-Y pattern, known also as a double zig-zag which found resistance and the end at the 1.4384 level and since then dropped strongly and sharply below the lower trendline connected from October of 2016. This break and sharp bearish activity is a confirmation that the bigger complex pattern is completed and that a new bearish five-wave cycle can be in progress.
We already see wave 1 of this cycle trading in final stages and can look for support near the 1.302 area from where a new temporary correction as wave 2 can later follow and take price towards the 1.3663 area for a pullback.
Comment:
Cable finally turned into a correction after it found support slightly below 1.27 region and previous wave X swing low. So, watch out for bigger and slow correction which may take some time and can be headed back to around 1.33 - 1.37 resistance area, from where we should see a bearish continuation, while it's trading below 1.4376 invalidation level.
