FX.co ★ GBP/USD

The GBPUSD currency pair - D1 chart. The wave structure here still maintains its downward order. The MACD indicator being used is also in the oversold zone but has started to rise above its signal line. Although the price is being pushed up slightly, it's too early to discount the sellers. For several days in a row, the price has been knocking on the zone where the resistance level of 1.3164 is located. It is evident that attempts were made to push for a decline there, but nothing came of it. A large player prevented the decline from playing out to the downside, although there was some downward movement present. The large player triggered the stops of the sellers, and ultimately there was an attempt to break the resistance level, which, however, failed. Overall, the price remained stuck until Wednesday, forming an accumulation zone. It was assumed that the upward spikes were a trap for buyers. It was expected that if it was a trap, the price would move down again with a false breakout. Additionally, a descending resistance line could be drawn based on the wave highs, which is an intermediate obstacle before the designated resistance level of 1.3297. The price couldn't break above this line, indicating a continuing downward trend. There was also a CCI convergence. In my opinion, there is still significant potential for the strengthening of the US dollar against some major currencies. Furthermore, there is currently a third downward wave of a higher weekly period, and if a Fibonacci target grid is applied to the first wave, a potential target can be seen - the 161.8 level. Why wouldn't the price reach this target in the coming weeks? It is quite a plausible scenario. The accumulation zone shrank to its limit until Wednesday and formed a triangle on smaller timeframes, from which it broke down and continued along the descending trend. The priority for now is downward movement, at least until the nearest low is updated, and then we will see what happens. Perhaps a correction will occur since there is potential for the formation of a bullish divergence.