Fri, Jun 02, 2023 @ 21:51 GMT
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GBP/USD Reverts Into Triangle Pattern After Brexit

Currency pair GBP/USD

The United Kingdom (UK) has officially and formally triggered Article 50 on Wednesday 29 March 2017, which starts the British exit (Brexit) out of the European Union. The process and negotiations will last 2 years and the UK is set to leave the EU by 29 March 2019.

The GBP/USD is building a small triangle (red/green lines) pattern. The wave WXY (orange) could be part of a wave X (blue) which is part of a larger WXY (blue) to complete a wave E (green) triangle.

The GBP/USD is building a potential ABC (pink) zigzag within wave X (orange). A break above resistance (red) could see price move towards the targets.

Currency pair EUR/USD

The EUR/USD broke below two support trend lines (dotted green) and is showing a strong bearish impulse. This could either be a wave 1 (light green) or wave A (dark green).

The EUR/USD could be in a final wave 5 (pink/orange) of the bearish impulse. A break below support (green) could see price move towards the Fibonacci targets whereas a break above resistance (orange) could see a correction of the wave 1/A (greens).

Currency pair USD/JPY

The USD/JPY continued with the bullish bounce and breakout above the resistance trend line (dotted orange). Price could be retracing the swing high and swing low of wave A (brown) which is why the Fibonacci levels of wave B vs A could become resistance levels. A bearish bounce could see price fall towards the 50% Fibonacci level of wave 4 vs 3 which in turn could be a bullish bouncing spot.

The USD/JPY offer support (green) and resistance (red) trend lines which could be breakout levels. However, price could bounce at the wave B vs A Fibonacci levels for an ABC zigzag (purple).

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