GBP/USD Approaches Channel Top and 23.6% Fib Resistance

Forex Trader, Analyst, Educator • Jul 9, 2018 at 5:39 AM EDT

The GBP/USD bullish correction has reached the top of the downtrend channel, which is a bounce or break zone.

GBP/USD

4 hour

The GBP/USD bullish correction has reached the top of the downtrend channel, which is a bounce or break zone. The GBP/USD could be in a larger bullish correction within a wave 2 (pink) if price manages to break above the bearish channel but then the 23.6% Fibonacci retracement level could be a bounce spot as well. A bearish breakout below support does not have to lead to a larger bearish continuation if the wave WXY (purple) pattern indeed unfolds as shown in the image.

1 hour

The GBP/USD is probably building a corrective wave 5 (green) within the minor bullish channel on this 1-hour chart.

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