GBPUSD – Near term uptrend could be a wave 5

GBPUSD – Near term uptrend could be a wave 5

GBPUSD is appeared to be in a multiyear triangle formation between 1.7000 and 1.4200. Corrective uptrend started from 1.5230 (Dec’11 low) is still in force and it has the potential to retest the 1.6620/1.6750 resistance before turning lower. A reversal below 1.5825/1.5770 refocuses on 1.5390 ahead of the key swing low at 1.5230. A break above 1.6750 however targets
1.6900/1.7040.

The pair has pierced the key swing high at 1.6310 and the near term uptrend could be a wave 5. The rally is now aiming for 1.6470/1.6500 where it may struggle. Immediate term weakness may hold above 1.6200. A reversal below 1.6130/1.6065 refocuses on 1.5910/1.5825. A move above 1.6500 however would extend the uptrend toward 1.6600/1.6615.