Chart of the day

GBPUSD is testing the strong uptrend downside resistance of 1.2600.

A break below 1.2600 is required to confirm that the five waves of upside are finished in the rising wedge and we should see a downside extension in the long-term fifth wave. A break above 1.2815 is required for the invalidation of the downside extension. If we do not see a break below 1.2600 we can see another test of 1.2815 before eventual reversal and a new test of 1.2600.

For short trades, you should open only upon a confirmed break below 1.2600. Long trade you can open only in the case of a confirmed break above 1.2815. Be patient and careful both intraday and long-term as this is a key resistance on the test and it would mean a continuation of swing consolidation or a break for direction.