GBPUSD closed strongly higher last week after crossing the recently broken trend-line connected from above 1.6300. This suggests that recovery from 1.4830 could be deeper than firstly thought.
As such, we labeled the recent big fall as a completed five wave move in wave I, followed by a corrective bounce which we think is wave II. W
ith that said, recovery from the lows is just temporary so we must be aware of a new sell-off once pair finds a resistance in one of the Fibonacci retracement levels (38.2%,50% or 61.8%).
For now sentiment is trying to turn bullish again, but will not last long. Break of 1.5020 will put pair back in bearish mode.
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