GBP/USD Bearish Trend Loses Momentum Near 1.35 and NFP

GBP/USD

4 hour

The GBP/USD bearish trend continued yesterday with a new lower low but price action seems to be slowing down. Price action looks more corrective in the most recent channel (orange/blue lines) as price approaches the critical 1.35 round level, which could be a new bounce or break spot. Price remains bearish as long as price stays below the resistance trend line (red) but a bullish break above the resistance would indicate the completion of wave 1 (pink) and the start of wave 2. Please note that today's NFP event could impact price action.

1 hour

The GBP/USD has either completed the wave 4-5 (green) correction or is still expanding the wave 4 (green) correction. This will depend on whether price will respect the Fibonacci levels and make a bearish bounce or will it break above the 61.8% Fib and resistance trend line (red).

Chris Svorcik

P.S. Don't forget to follow Admiral Markets on Facebook – or @AdmiralMarkets on Twitter – for the latest market updates.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.