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USD Weakness Continues with Massive Nose Dive

By:
Chris Svorcik
Updated: Mar 9, 2020, 08:52 GMT+00:00

US Dollar is losing its ground due to fears over its economy with the coronavirus spreading. BP/USD is breaking above the resistance.

USD Weakness Continues with Massive Nose Dive

Dear traders, the GBP/USD is breaking above the resistance trend lines (dotted red) with fierce momentum. The US Dollar is losing its ground due to fears over its economy with the coronavirus spreading.

4 hour chart

GBP/USD 4 hour chart

The GBP/USD momentum is very strong. This makes it likely a wave 3 (blue). The bullish impulse will probably continue to at least 1.3250-75 before any significant pullback will take place. Ultimately the bullish bounce took place the 50% Fibonacci support of wave B vs A at 1.2735.

1 hour chart

GBP/USD 1 hour chart

The GBP/USD is showing an aggressive wave 3 (green) and a shallow wave 4 (green) pullback. The bounce at the 23.6% Fibonacci indicates that the bulls are fully in control. A bullish 5 wave pattern is expected to take price up to 1.35 with a pullback at 1.3250-1.33.

GBP/USD

Good trading,

Chris Svorcik

The analysis has been done with the help of SWAT method (simple wave analysis and trading)

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About the Author

Chris Svorcikcontributor

Chris Svorcik is co-founder, trader, and analyst with Elite CurrenSea (www.EliteCurrenSea.com) since 2014.

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