GBP/USD impulse breaks below 1.28 yearly low 2016.10.05

EUR/USD

4 hour

The EUR/USD made a strong bearish and bullish movement yesterday. The price action however remained part of a large consolidation zone, which is indicated by the support (green) and resistance (red) trend lines. An ABCDE triangle chart pattern (blue) is most likely unfolding within wave X (purple) unless price breaks above the invalidation level (pink). A break below support (green) indicates that a wave Y (brown) is most likely starting within wave d (green).

1 hour

The EUR/USD completed the bearish ABC zigzag (orange) mentioned yesterday. The bullish bounce near support (green) levels has seen price quickly move above 1.12. For the moment I am expecting price to remain choppy and a potential ABC (green) could form within wave E (blue).

GBP/USD

4 hour

The GBP/USD has moved below the low at 1.28 of earlier this year and is now building a bearish impulse which has been labelled as a wave 3 (blue). Price has now reached the 261.8% Fibonacci target, which could cause a retracement. The next bigger target could be near 1.25.

1 hour

The GBP/USD seems to have completed 5 waves (grey/orange) within wave 3 (blue). A wave 4 retracement (blue) should see price respect and turn at the shallower Fibonacci levels like 23.6% and 38.2% Fib.

USD/JPY

4 hour

The USD/JPY broke above the resistance of the daily downtrend channel (dotted red) and a wave 3 seems to be developing (purple).

1 hour

The USD/JPY is showing strong bullish momentum potentially as part of multiple wave 3's. The current wave 3 (green) could see a light, shallow and corrective wave 4 (green) which usually speaking turns at the 23.66 or 38.2% Fibonacci level.

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