HomeContributorsTechnical AnalysisGBP/USD Retraces To 61.8% Fibonacci Level Of Wave-2

GBP/USD Retraces To 61.8% Fibonacci Level Of Wave-2

Currency pair GBP/USD

The GBP/USD is probably building an ABC (blue) zigzag as part of a wave 4 (purple). The support (green) and resistance (orange) trend lines are showing a contracting triangle chart pattern, which is critical for a potential breakout towards the larger support (dark green) or resistance (brown).

The GBP/USD has completed 5 bullish waves (purple) either within a larger wave 1 (orange) or alternatively a wave A. The pullback could be part of a wave 2 (orange) and price has already bounced at the 61.8% Fibonacci support level. A break below the 100% Fib level of wave 2 vs 1 invalidates the wave 2 (orange).

Currency pair EUR/USD

The EUR/USD seems to be in a bearish breakout and is developing a downtrend (red line). Price could be moving lower within a wave 3 (purple).

The EUR/USD needs to break below the support (green) trend line before a continuation of the wave 3 (purple) becomes possible. A move higher could face heavy resistance levels (orange/dark red/red).

Currency pair USD/JPY

The USD/JPY is breaking above the resistance trend line (dotted red) after making a bullish bounce at the wave 4 (purple). This bullish breakout could be part of a wave 3 (blue) within wave 5 (purple).

The USD/JPY indeed started and completed a wave 4 (brown) correction at the 50% Fibonacci retracement level. Price is now trend higher within a bullish trend channel (red/green lines). A break below the support trend lines (green) makes a continuation of wave 5 (brown) unlikely. A break above the 61.8% Fib target could see further extensions towards the next Fib targets.

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