GBP/USD breaks above daily resistance in bullish ABC zigzag 2016.09.02

EUR/USD

4 hour

The EUR/USD made a bullish bounce at the 38.2% Fibonacci retracement level of wave D (green) vs B. The current wave count is expecting price to show a bearish bounce at the Fibonacci levels of wave X (purple) for one more bearish swing towards lower Fib levels of wave D vs B. A break above the trend lines (red/orange) would invalidate this scenario.

1 hour

The EUR/USD broke above the resistance line (dotted orange) with strong momentum (wave 3 green) which could indicate a bullish push towards above the 38.2% Fibonacci level of wave X vs W.

GBP/USD

4 hour

The GBP/USD broke above an important resistance (red) trend line from the daily chart. The break leads to a change of wave count as indicated yesterday and now price is in a larger ABC correction (pink) within wave 4 (blue).

1 hour

The GBP/USD showed strong bullish momentum yesterday which has been labelled as a wave 3 (purple). An ABC correction (grey) within wave 4 (purple) could take price back to the Fibonacci retracement levels but a break below the 61.8% invalidates the wave count. A break above the resistance (orange) could indicate a continuation of wave 5 (purple) within the uptrend channel (green/red lines).

USD/JPY

4 hour

The USD/JPY has reached a strong resistance trend line (red) at the top of the daily downtrend channel, which could either cause a larger retracement or a sideways pattern like a bull flag chart pattern. Wave 1 (purple) could have been completed at the most recent high or could see a continuation higher if the trend line is broken.

1 hour

The USD/JPY is making a mild correction, which could indicate the completion of wave 3 (dark blue). A larger correction could price head back to and bounce at the Fibonacci retracement levels of wave 4 (blue) vs 3.

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