GBP/USD: A Bearish Reversal?
GBP/USD is in bullish mode and reached our projected zone for this week; 1.5800-1.5900 which is actually a very important resistance zone in combination with the wave principle and Fibonacci levels. As you can see on the chart we are tracking a huge wedge pattern called an ending diagonal which usually predicts a very strong reversal. With that said, we are keeping an eye on potential sell-off on this pair from current resistance zone. This sell-off can happen soon if we consider that prices are in late stages of wave 5) now, testing 61.8% Fibonacci projection compare to wave 3) and also approaching 161.8 % extension of wave 4). However as always only price can confirm the direction you anticipate. In other words, we need a five wave decline from the highs to confirm further bearish waves for the pair. Only then trader could be interested in short opportunities, until then stay aside. GBP/USD 4h Elliott Wave Analysis