GBP/USD, USD/JPY challenge S&R at 120 and 104.50 2016.10.17

EUR/USD

4 hour

The EUR/USD built a lower low but seems to be bouncing at 1.0960 as price breaks away from the consolidation zone in a downtrend. At this moment a bearish ABC zigzag (green) within a larger contacting triangle (wave d green) seems the most likely but if the breakout below wave A (green) is vey impulsive, then a new downtrend could be starting. For the moment, the Fibonacci levels of wave B (green) are expected to act as resistance.

1 hour

A bullish ABC (orange) could take place within wave B (green).

GBP/USD

4 hour

The GBP/USD continues to build as expected a triangle formation within a wave 4 (green) consolidation zone. A break below support (green) could indicate the continuation of the downtrend. A break above resistance (red) could indicate a continuation of the wave 4 (green) retracement where the Fib levels are expected to act as resistance.

1 hour

The GBP/USD is in a wave B (orange) correction unless price manages to break below the 78.6% and 100% Fibonacci levels of wave B vs A (zig zag). A bullish bounce at support could complete ABC (orange) within wave Y (blue).

USD/JPY

4 hour

The USD/JPY needs to break above the previous of wave 1 (purple) before a larger uptrend (wave 3 purple) can start.

1 hour

The USD/JPY seems to be starting the wave 5 (blue) with 5 internal waves (brown). A break above resistance is needed before price can potentially build wave 3 (brown).

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