GBPUSD ends the bullish correction

Dovish FED weakened the USD but just for a while. Yesterday the American Dollar recovered from the losses and today, bears are continuing the victorious ride. GBPUSD is already 260 pips below the highs from January and we can actually see a potential for 260 more.

The cable is in a down trend since the end of February 2022. Since the end of September, the price entered a correction stage, which at first was very rapid and volatile but lost steam over time. The price currently is forming a double top formation, which may be the end of a bullish correction. All this is happening on the 50% retracement of the main downtrend and the green area above it has to be considered as a key resistance at the moment.

The price is currently fighting with two up-trendlines. One of them (red) was already broken, but we do have another one not far behind (blue). Price breaking the blue up trendline would give us a sell signal towards the area (purple) of the Fibos – 23.6% retracement of the bullish correction and 38,2% retracement of the main downtrend.

The chances that we will get there are quite high but we need to remember about today’s NFP, which may, but does not have to, crash this promising technical scenario.

Source: https://www.axiory.com/analytics/technical-analysis/gbpusd-ends-the-bullish-correction