GBP/USD Daily – chart
GBP/USD daily chart show us an end of a wave 4 and a probable beginning of a wave 5. According to the latest data on the upper chart i consider it a beginning of a wave 5 and according to my technical analysis a probable target for a wave 5 end would in the are of 1.6440 and 1.6469 that is also highlighted in the white rectangle on the chart. Now we might have some probable resistance areas from where the market would retrace or bounce out of, on the way to our target.
The first are would be around the 1.6224 area (on the chart is highlighted by a red horizontal line). The second probable resistance point that we might encounter on the way to our target would be around 1.6329 area. Now the second area i would see it as a stronger resistance because the market would make a higher high above the 3rd wave and that will give a good reason for sellers to step in.
The target of the fifth wave at around 1.6440 and 1.6469 is a target that where price would reverse at or continue thru it. Now the end of the 5 wave would mean that a B wave … larger wave tha contains the 5 wave move up would be complete and from there i would expect a bearish move bellow 1.5267 bellow the beginning of this 5 wave move that would mean a C wave completion…
GBP/USD weekly chart
We have also to take in consideration that GBP/USD is in an triangle on the weekly chart. A triangle in a downtrend and that could mean a continuation of this trend and a breakout to the downside should be expected.
The end of this 5 wave move not only completes the larger B wave but also make another hit on the weekly triangle and also another hit on the fib. retrc. 38.2% that has proven to be for a long time a great resistance.
Related to the weekly chart where the triangle is … a fake breakout to the upside of the triangle could be possible in order to make an attempt of reaching the 50% of the fib retrc.