EUR/USD, GBP/USD Bearish Breakout below Consolidation and Triangle Patterns

EUR/USD

4 hour

The EUR/USD broke the support level of the sideways consolidation zone (dotted blue/red) and price made a bearish breakout towards the next support trend line (green). The range has been labelled a wave 4 (orange) due to the shallow pullback. The wave 5 (orange) could be part of a wave A or 1 (both equally likely at this moment).

1 hour

The EUR/USD bearish breakout has reached the 161.8% Fibonacci target and support trend line (green). A break below it could see an extension of wave 3 (pink).

GBP/USD

4 hour

The GBP/USD also broke below the contracting triangle chart pattern (dotted blue / red line). The bearish breakout could see price challenge the 61.8% Fibonacci level of wave X vs W (blue) via an ABC zigzag (pink).

1 hour

The GBP/USD is probably building a 5 wave pattern (purple) within wave C (pink). A potential wave 4 (pink) could see price retrace to the Fibonacci levels of wave 4 vs 3.

USD/JPY

4 hour

The USD/JPY is building an ABC zigzag (brown) towards the 50% Fibonacci support level of wave 4 vs 3 (purple).

1 hour

The USD/JPY is challenging the Fibonacci levels of wave 2 (purple). A break above the 100% Fib level invalidates wave 2 (purple) whereas a break below support could see price develop a wave 3 (purple).

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