Currency pair GBP/USD

The GBP/USD is in a bearish channel (blue/brown lines) which could be part of a larger complex correction as indicated by the support (green) and resistance (red) trend lines.

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The GBP/USD is building an ABC bearish zigzag (orange) within a downtrend channel (brown/blue lines). A break above the 100% Fibonacci level of wave B vs A invalidates the ABC bearish zigzag and indicates a potential bullish breakout scenario above the bearish channel. A break below the support trend line (green) could see price retest the bottom of the channel (blue).

Currency pair EUR/USD

The EUR/USD completed a 2nd wave (blue) as expected near resistance (red) and made one more lower low. The bearish price action however only reached the 100% Fibonacci target of wave 3 vs 1. This could either be explained by the fact that A) price is building an bearish ABC zigzag (not a 123) or price is expanding the wave 3 (blue) via an internal 5 wave (see 1 hour chart).

For the moment the assumption in this 1 hour chart is that the EUR/USD is building a wave 2 (orange) within wave 3 (blue). The invalidation level of this wave count is a break above the 100% Fibonacci level of wave 2 vs 1.

Currency pair USD/JPY

The USD/JPY broke back below the support trend line (dotted blue) and previous top (dotted green) which invalidated a potential bullish 5 wave. The alternative is an ABC (orange) zigzag within a larger wave 4 (purple) correction.

The USD/JPY is building an ABC (orange) bearish zigzag within wave Y (brown).

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