GBP/USD Bullish Break to Confirm ABC Zigzag Pattern

GBP/USD

4 hour

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

The GBP/USD is challenging a key resistance trend line (orange) and a bullish breakout could confirm the ABC zigzag pattern (blue). Price needs to break above the downtrend channel before a larger bullish correction can take place whereas a break below the support (green) line could indicate a bearish continuation with the down trend.

1 hour

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

The GBP/USD is probably building a bullish wave 5 (green) but if price fails to break above the resistance trend line (red), then price could also be building an ABC (orange) correction within wave 4 (green). At the moment though, a bullish breakout to complete the wave 5 (green) seems likely and price could move up to the Fibonacci targets of wave 5.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.