The GBP/USD is moving higher within a bullish wave C (orange) pattern. Although the NFP can through price into both directions, the current wave analysis favors a bullish continuation towards the Fibonacci targets of wave C vs A. The main target for the moment is 1.2435-40 around the 161.8% Fibonacci target.
The GBP/USD bullish price action on the daily and 4 hour chart created a strong bullish breakout yesterday above the resistance zone (dotted red). The strong momentum could be a wave 3 (dark red) as long as price stays above the top of wave 1 (dark red). A bullish breakout above the resistance trend line (red) could indicate a continuation of wave 5 (dark) within wave C (orange) towards the Fibonacci targets. A bearish bounce at 1.24.1.25 could occur with the completion of potential wave C (orange).
