Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- The GBP/USD pair bounced from the 1.5960 area and is now above the 1.61 area. This looks like that final push to 1.63 we have been anticipating.
- The structure of the rally however has not shaped out to be impulse just yet, though the acceleration suggests the current rally should be a wave 3, perhaps a wave (iii) of 3 in a terminal wave attempt towards 1.63.
- If this is the case, a decline from the current 161.8% projection (the second upswing is 161.8% of the first upswing at 1.6165.) should not break below 1.6070.
- Note also that the RSI has broken above 60 for the first time in February, a sign that is has broken out from its bearish momentum. A break above 70 suggests a bullish momentum breakout and furthers the case towards 1.63.
- The 4H chart shows how close the market was to invalidating the impulse wave structure of our terminal wave. It is fine now, and the rally towards 1.63 would satisfy the count we have been stalking this pair with.
- The RSI in the 4H chart is breaking back above 60, a sign of bullish continuation, and the RSI in the daily is also turning back up.
- Again, this bullish scenario now is looking for the market to stay above the 1.6070 level in a throwback that might have started from 1.6165.
Has the GPB/USD resumed uptrend? We would love to hear what you think.