GBP/USD: Three Drives and Butterfly Patterns in Play

Good day Traders,

Trust you are doing great.

Here is my brief analysis of the GBPUSD pair.

Last week, a bullish Three Drives pattern was identified on GBP/USD, completing on October 17th. Following the pattern's completion, the market experienced a brief impulsive move to the upside before retracing back to the support zone. Currently, the market is testing this support level, and a sustained move higher could follow, further validating the typical characteristics of this pattern, often found at the end of a trend or correction. If the support holds, we anticipate a move toward the 1.31026 price region. Additionally, a potential Butterfly pattern appears to be emerging, with its completion also expected around the 1.3146 level.

This outlook will be invalidated if the price moves further down and breaks below the 1.29565 level.

Cheers and happy trading!!!