GBP/USD Challenges 61.8% Support Fib After ABC Correction

Forex Trader, Analyst, Educator • Jun 27, 2018 at 4:20 AM EDT

The GBP/USD remains in a downtrend channel but the bearish momentum is weakening.

GBP/USD

4 hour

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The GBP/USD remains in a downtrend channel but the bearish momentum is weakening. Price is in a difficult spot because both the bullish correction and downtrend continuation are equally likely. That said, the wave count is favouring a larger corrective zone back towards the Fibs of wave 2 (pink).

1 hour

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The GBP/USD seems to be building a bearish ABC correction (green), which has respected and stopped at the 61.8% Fibonacci level of wave 2. This wave pattern is invalidated if price breaks below the 100% Fib. Price could move up higher as part of a wave 3 or wave C if price breaks above the resistance trend line (orange).

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