GBPUSD, Enormous Wedge-Formation, Looking For Stabilization!

Hello Traders Investors And Community, welcome to this analysis where we are looking at GBPUSD weekly timeframe perspective, the massive formation it is building up there, what we can expect from it and what it needs to fulfill for a proper confirmation of this huge formation. The last months and weeks GBPUSD was in a steady but week downtrend with several lower lows and lower highs forming on the wedge and an important wave-count forming. Such formation will normally breakout with high volatile movements to the upside but the big question is now when this breakout occurrs and if the bottom already reached or if there is more to come before a stabilization can be considered, in this case, I detected some important and crucial signals which will determine the further outcome of this pair.

As you can watch when looking at my chart is that GBPUSD just testing another time the strong 200-EMA resistance which is marked in black, furthermore this level coherently forms resistance together with the higher boundary of the wedge-formation where GBPUSD several times formed bearish movements to the downside, therefore there is a high potential given that GBPUSD forms another time bearish moves to the downside as this is still a solid resistance-cluster which should not be ignored in the structure. When the pair falls below the 30-EMA which is marked in red it will confirm the last leg to the downside till it reaches crucial support and possible bottom in the back-up-zone you can watch marked in my chart.

Taking all these factors into consideration GBPUSD will continue with its steady but weak downtrend till there is a decisive bottom forming which is strong enough to move with a volatile move above the upper boundary and therefore finally confirm the huge broadening wedge formation it is trading in, when this happens it will greatly confirm further upside also in the middle and long-term but this needs definitely a strong break of the upper boundary and possible following confirmation of it. The next time will show how this scenario is playing out and when there is a breakout of the long-lasting downward movement GBPUSD is forming here till then the middle-to-long-term remains to confirm the final wave.

In this manner, thank you for watching, support for more market insight and have a good day!
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Information provided is only educational and should not be used to take action in the markets

Comment:

ANALYSIS UPDATE: GBPUSD completed the major wedge formation count to greatly bounce within the lower boundaries from where a massive breakout has shown up.

Since GBPUSD completed the wedge formation with the expansion breakout it reached all of the projected target zones.