GBP/USD Challenges Support Line After Double Top

GBP/USD

4 hour

(Click on image to enlarge)

Source: Admiral Markets MT5 with MT5SE Add-on GBP/USD motive wave

The GBP/USD made a bearish bounce at the previous top, and the price is now challenging the support trend line (blue). The price will remain indecisive when in between the triangle chart pattern, which is indicated by the support (blue) and resistance (red) trend lines. A bearish breakout indicates an extended WXY correction (green), as shown in the image, or an immediate downtrend continuation within wave 5, whereas a bullish break could be part of a WXY (blue) within wave 4 (purple).

1 hour

(Click on image to enlarge)

Source: Admiral Markets MT5 with MT5SE Add-on GBP/USD motive wave

The GBP/USD has probably completed an ABC (orange) zigzag pattern within wave X (green), and the price could now be ready for a new ABC (orange) within wave Y (green). A bullish break above the resistance trend line (orange) invalidates the bearish ABC pattern, whereas a bearish breakout could confirm an ABC or 123 wave pattern.