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GBP/USD Breaks from Bearish Momentum; Confirms Wave Count (2/15)

GBP/USD
GBP/USD

- The Cable started the week in a very choppy manner, first breaking away from the bearish momentum, but now a throwback looks took sharp a decline for the bullish outlook towards 1.63.
- Price action above all suggests a bearish attempt could be kicked off. But I have reasons to believe there is still another rally attempt towards 1.63, even if this becomes a failure of 1.6277, an attempt is anticipated.
- This theory however is put aside with a break close below 1.6050 (61.8% retracement level). A close 1.60 is a stronger signal, and a break below 1.5950 should confirm a bearish attempt towards 1.5750.
- The 4H chart shows the candle heading into the US session to be very convincing for the bearish outlook. The near-term target is the 61.8% retracement and base of the current short-term rally at 1.5960. A break below this and 1.5950 looks at the intermediate term target at 1.5750.

GBP/USD

Does the failure and strong bearish candle suggest a decline, or could there be another blow off type rally towards 1.63? We would love to hear what you think.

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Fan Yang CMT
Chief Technical Strategist