GBP/USD Prepares ABC Pattern In Bearish Wave 2

GBP/USD

4 hour

(Click on image to enlarge)

Source: Admiral Markets MT5 with MT5SE Add-on GBP/USD motive wave – Accessed 5 October 2018 at 5:00 AM GMT

The GBP/USD currency pair made a bullish bounce and is now retesting the resistance trend line (red), which is a decision zone for a bullish breakout or a bearish bounce. The price reaction will depend on which candlestick patterns develop at the resistance line. A bullish break could see the price move higher to the test the Fibonacci levels, whereas a break below the support trend line (blue) could indicate a larger bearish breakout.

1 hour

(Click on image to enlarge)

Source: Admiral Markets MT5 with MT5SE Add-on GBP/USD motive wave – Accessed 5 October 2018 at 5:00 AM GMT

The GBP/USD currency pair is probably building an ABC (blue) retracement back to the Fibonacci retracement levels of wave 2 vs 1. This wave 2 (purple) is invalidated when the price breaks above the 100% Fibonacci level.

Daily

(Click on image to enlarge)

Source: Admiral Markets MT5 with MT5SE Add-on GBP/USD motive wave – Accessed 5 October 2018 at 5:00 AM GMT

The GBP/USD currency pair is indicating the potential start of wave 5 (pink) and end of wave 4 (pink) if price manages to break below the support trend line (blue).