GBP/USD Testing 50-61.8% Fibonacci Resistance Zone

GBP/USD

4 hour

GBPUSD Hourly Chart - Wave Analysis

Source: Admiral Markets MT5 with MT5SE Add-on GBPUSD motive wave – Accessed 8 October 2018 at 4:00 AM GMT

The GBPUSD currency pair broke above the resistance trend line (dotted red) for a bullish breakout, but the price is now struggling at the Fibonacci retracement levels of wave 2 vs 1. Whether the price manages to break or bounce depends on the candlestick patterns, and whether the price will break above the 100% Fib (invalidates wave 2) or below the support trend line (confirms wave 2).

1 hour

PICTURE [date 1]

GBPUSD Hourly Chart - Wave Analysis

Source: Admiral Markets MT5 with MT5SE Add-on GBP/USD motive wave – Accessed 8 October 2018 at 4:00 AM GMT

The GBP/USD currency pair is testing the Fibonacci retracement levels of wave 2 vs 1. A break above the 100% Fibonacci level indicates an expanded and ongoing wave 4 (pink) rather than a wave 2 (purple).

Daily

GBPUSD Daily Chart - Wave Analysis

Source: Admiral Markets MT5 with MT5SE Add-on GBP/USD motive wave – accessed 8 October 2018 at 4:00 AM GMT

The GBP/USD currency pair seems to have completed a wave 4 (pink) correction at the 38.2% Fibonacci retracement level. The price, however, needs to break below the support trend line (blue) to confirm the start of the wave 5 (pink).

Disclaimer: The opinions in this article are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit ...

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