FX.co ★ dusty24 | GBP/USD

The currency pair GBPUSD - D1 chart. Last May was quite clear from a technical perspective. Previously, a descending figure formed, followed by an ascending wedge breakout, leading to a significant decline. The figure has not fully played out yet, but it seems there is still more to come. After the downward breakthrough, the horizontal support level at 1.3312 prevented the price from falling further. In that area, some sales were closed, and new purchases caused a significant price increase, more than half of the previous drop. The price rose straight to the mirror level at 1.3515, indicating a likely upcoming decline. As expected, a bearish engulfing candlestick pattern occurred. It can be assumed that this retracement after the fall was the second wave. It seemed like nothing was hindering the realization of the descending scenario. It is still relevant, just delayed temporarily with a price spike to trigger the stop losses of sellers. I believe that we are currently in the third wave of a higher weekly period. The entire decline from late January to April was the first wave. The rise in April was the second wave, and now there is some downward pressure in the third wave. On the daily chart, the wave structure is forming a downward pattern, with the MACD indicator in the selling zone. When implementing the descending scenario, I have set several targets for myself. The first target is the level at 1.3312, followed by the ascending sloping line. In this area, there will likely be some sideways movement with a slight increase. But then I think there will be a breakthrough of this ascending line with a move below this year's minimum. By applying a Fibonacci target grid to the first wave, the 161.8 level can be seen. If everything goes according to plan, it is a quite achievable target. For now, selling is a priority for trading on smaller timeframes.

H4 Chart. There was a focus on the level at 1.3406 plus the ascending line. They provided a bounce upwards. Positive US news affected the strengthening of the US dollar in the market. The line and level were broken, and it looks promising to aim for last week's low.