HomeContributorsTechnical AnalysisWhat Next After GBP/USD's Dramatic Close And Reverse?

What Next After GBP/USD’s Dramatic Close And Reverse?

Currency pair GBP/USD

The GBP/USD is building a correction between support (green) and resistance) which is most likely a wave 4 (purple). A bearish ABC (orange) seems to be completed within a larger wave B (blue) correction as price bounced strongly at the 50% Fibonacci level.

The GBP/USD bullish momentum is probably a 5 wave (orange) structure, which could mean that price is retracing within wave 4 (orange) as long as price stays above the 50% Fibonacci level.

Currency pair EUR/USD

The EUR/USD break below the support trend line (blue) could spark a continuation of the wave 3 (purple). A break of the resistance trend lines (orange/red) could change the wave structure

The EUR/USD is most likely in a wave 4 (blue) retracement, which would be invalidated if price broke above the resistance (red) and 61.8% Fibonacci. A break below support (green) could see a continuation.

Currency pair USD/JPY

The USD/JPY is building a retracement back to the Fibonacci levels of wave 4 (purple). The 38.2% and 50% are likely support levels to complete a wave 4 (purple).

The USD/JPY could have completed a bearish ABC zigzag (orange) at the 38.2% Fibonacci level of wave 4 (purple). A break above the resistance trend lines could indicate a continuation of the bullish momentum whereas a break below support (green) could see a bearish continuation.

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