On April 18th I was turning bullish GBP/USD looking for a move towards 1.30. Now we are here (very close) and I believe it is time to think our next steps.
So far the recent breakout above the short-term triangle is a termination formation. Triangles usually precede the final thrust of a trend and I believe that the upside is now limited and there is no good risk reward from being bullish the pound.
The recent sideways actions was corrective and most probably wave 4.
Once wave 5 is completed (Around 1.30) I would expect a pull back towards the cloud support around 1.24 at least. In the longer-term I will be expecting a rejection at the weekly Kumo (cloud) resistance and longer-term reversal for new 2017 lows.
It is still too early however for such a long-term call but this is the most probable path I can see the pound taking.
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