GBPUSD had raised through 1.3951 high yesterday, before pulling back. It was discussed in the weekly report for a possible push through 1.3950/60 zone, before topping out. Believe it or not, probabilities remain high for a bearish reversal from here.
It could be too early to confirm a top in place but a break below 1.3775 immediate support will add further confidence to the bearish setup. Going back into the wave structure, GBPUSD had terminated larger degree Wave 4 around 1.2685 levels in September 2020.
Since then Wave 5 was in progress and might have terminated yesterday around 1.3951 levels respectively. Also note that GBPUSD unfolded into 5 waves between 1.2675 and 1.3951, marking an impulse wave.
If the above structure holds well, GBPUSD might have either topped at 1.3951 yesterday or is very close to carving a meaningful top soon. Either way, upside remains limited and bears might be poised to push lower towards 1.2675 mark in the next several weeks.
Furthermore, please note that a break below 1.3560 would confirm with certainty that GBPUSD has reversed its trend. Prices would enter the sell zone of the support trend line and selling on rallies might be a preferred trading strategy.
Over the short term, it might be good to wait for a break below 1.3775 support at least, before considering GBPUSD shorts. Once bears are able to break lower, it would be good to sell through 1.3850/60 levels going forward.
Finacademy Technical Team
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USDJPY bulls are now looking poised to push through 112.00/50 mark, after have carved yet another higher low around 107.50. Please note it bounced off the trend line support since January 2021 lows as well. Looking higher from here for next few weeks.
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