Chart of the day

GBPUSD is breaking below the falling wedge resistance 1.2308. This break is leading to a deeper pullback to 1.1950.

This is still viewed as the fourth wave pullback of the recent five upside waves until we see a possible break of 1.1950. If we get a confirmed break below 1.1950 that would mean we are in the long-term fourth downside wave and the five upside wave s would be invalidated. Instead we will see a new historical low.

Short trade, you can open here with the stops above 1.2350. We favor the short trade entries at this stage as the break below wedge resistance indicates a deeper pullback or a downside five waves continuation.