Failure to sustain the downtrend through December's low has yielded control to bulls in the short-term.
The daily chart suggest the down ABCD trend remain in place.
The 4 hour chart suggests that short-term support has developed as bulls look to make a move toward the outer downtrendline.
Bulls have scored a point above recent resistance implying that a crown of the inner trendline is developing. If this holds, we look for a move toward the outer downtrendline.
Range trading has developed in the short-term as prices remain withing the a 200 pip trading range.
Price remain bearish in the big picture (daily chart) though we cannot rule out another test of broken trendline resistance.
The 4 hour chart implies further range trading possible inside the recent 200 pip range.
The short-term chart implies range trading inside recent choppy trading range. If the recent morning star holds, we look for price to challenge the top end of the range.
The daily GBPUSD has prices within a down ABCD as resistance was seen at the underside of the broken uptrendline.
The 4 hour has prices in an up ABCD pattern while current prices remain within a large range.
The 2 hour chart suggests that there is potential support at the outer uptrendline. For now, we favor buying bullish candlestick formations on dips or selling bearish candlestick formation on rallies near the outer downtrendline.
GBPUSD failed to make a new high as the EURUSD did in earlier trading. If recent resistance holds, we look for prices to continue moving lower toward outer-uptrendline support. Even if recent resistance fails, I see potential resistance at the outer downtrendline as shown on the 4 hour chart below.
The 2 hour chart also shows failure of bulls to make a new high above 1.5664. If prices hold below recent resistance, I view this as more pennant price action with potential for prices to move lower.
Range trading has developed in GBPUSD as is often typical of this currency as prices remain within a pennant range as seen on the 4 hour chart below.
Similarly, the 2 hour chart shows this as well with prices presently reacting off of pennant support. Should the recent support hold, there is potential for further moves to the upside within the range. However, if bears can enter the sell zone in relation to the outer up-pennant line as shown, we look for a resumption of the long-term bearish trend.
GBPUSD remains within a pennant as shown on the 4 hour chart though near the top end of the range. If the recent high holds, we look for prices to move toward the bottom of the range in upcoming sessions.
On our GBP/USD Daily time frame the market is making lower lows and lower highs. Currently we are hitting a level of past support acting as future resistance. This is not a good time to buy the market. We should look for a potential bearish reversal on the smaller time frames since we are hitting this level of resistance.
On our 4 hour and 60 minute time frame we have an counter upward trend line drawn and we are going to wait for the market to break into our sell zone and look for the bearish entry. Unless the market is getting ready to reverse bullish we are in the correct spot for the bears to start to take control.
GBP/USD Daily time frame has broken the down trend line and has entered into the buy zone. Over all the GBP/USD Daily has a down ABCD Swing with our A = 1.6298 B = 1.5484 C = .50 making our D extension the 1.618. The market has entered back into the AB boundary which we know restarts the fight between the bulls and the bears.
The bulls are going to try and bring this market up to take out our A and the bears are going to try to bring the market back down to hit our 1.618 D extension.
4 Hour time frame has full filled an up ABCD swing with our A = 1.5366 B = 1.5664 C pull back the .86 making our D extension the 1.18. D extension has been hit so we are now waiting for the market to form a high or two to the left and two to the right so we can move our up ABCD swing.
60 Minute time frame is with in 45 Pips of hitting its D extension. Overall up ABCD swing with A = 1.5499 B = 1.5679 C = .50 Making our D extension the 1.618. Markets like to move in waves making higher highs and higher lows in an uptrend. The market may pull back bearish first before running bullish and hitting the D extension. If the market pulls back it may fall to the B high of 1.5679 which can act as past resistance becoming future support to allow the market to rally back bullish or up.
GBP/USD Daily time frame we show that the bulls have broken the down trend line. This means the bulls could start to reverse. We are going to see if the bulls can take out the price point of 1.5914 which is the next bullish point. If the bulls can take out the next bullish point we can start to expect the market to pull back bearish and give us a right tip of a potential bullish crown.
This means we are going to expect teh smaller time frames of the 240 minute time frame to break into the sell zone and reverse the overall up trend line. If the market breaks into the sell zone on the 240 minute time frame. Draw a down ABCD swing and look to sell the C and limit out at the D
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