GBP/USD Bearish Drop Reaches Psychological 1.20 Barrier

Siječanj 16, 2017 03:45

GBP/USD

4 hour

The GBP/USD downtrend continues and is now testing the previous low on the daily chart of the year 2016, which dates back to October. A break below the support levels (blue/green) and psychological round level of 1,20 could see price test the Fibonacci targets.

1 hour

The GBP/USD bounced at the resistance trend lines (orange/red) and is showing strong bearish momentum which has been labelled as a wave 3 (brown). Price could now retrace within a wave 4 (brown). A break above the 50% Fib of wave 4 vs 3 would invalidate it.

EUR/USD

4 hour

The EUR/USD is building a retracement within a wave 2 (brown) correction. Price could test the higher 78.6% Fib as well, but the wave 2 (brown) is invalidated if price breaks above the 100% Fibonacci level of wave 2 vs 1.

1 hour

The EUR/USD is moving sideways in a choppy, corrective pattern, which is why the price action has been labelled as a wave B (green). A break above resistance (red/orange) could see price test the 78.6% Fib.

USD/JPY

4 hour

The USD/JPY retraced back with an ABC (blue) correction towards the 23.6% Fibonacci retracement level of wave 4 (purple). Both the 23.6% and 38.2% Fibonacci levels of wave 4 (purple) are likely bouncing spots. A break above the resistance trend lines (orange/red) could confirm a continuation of the larger uptrend.

1 hour

The USD/JPY could have completed a 5 wave (brown) leading diagonal for the first bullish wave (blue). This wave structure would become invalidated if price breaks below the 100% level of wave 2 (blue).

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