GBP/USD Downtrend Challenges Fibonacci Zone at 1.34

GBP/USD

4 hour

The GBP/USD broke below the support trend lines and the downtrend continued with a new lower low. The Cable is now approaching a key Fibonacci support zone (green) around 1.34. Price will need to break below the support trend line (green) before a bearish breakout could occur whereas a bullish break could indicate a retracement within wave 2.

1 hour

The GBP/USD is now building a corrective chart pattern which could be a wave 4 (green). A bearish breakout aims for the Fibonacci targets of wave 5 (blue/purple) whereas a bullish breakout could retrace back to the Fibonacci retracement levels of wave 2 (pink)

Chris Svorcik

P.S. Don't forget to follow Admiral Markets on Facebook – or @AdmiralMarkets on Twitter – for the latest market updates.

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.