GBP/USD, USD/JPY develop reversals with huge momentum 2016.06.01

EUR/USD

4 hour

The EUR/USD has slightly broken above the resistance trend line (dotted red), which could indicate the potential for a bigger correction. Price has stopped at the 23.6% Fibonacci level of wave "4 vs 3" and the wave count now expects a bigger correction to the 38.2% Fib unless price breaks the bottom of wave C (blue).

1 hour

The EUR/USD is labelled as an ABC (green) and price has stopped at the 78.6% Fibonacci level of wave B (green). A break above the resistance trend lines would confirm the potential for price to rally for a wave C (green).

GBP/USD

4 hour

The GBP/USD failed to break the horizontal resistance level (red) and most likely has completed the wave C (pink). A bigger reversal is expected when considering the strong bearish momentum of wave 1 (blue).

1 hour

The GBP/USD broke support trend lines (dotted green) after failing to break resistance (orange/red). The hook back after the break has been labelled as a wave 2 (pink) and price could still be in a wave 3 (pink) impulse.

USD/JPY

4 hour

The USD/JPY failed to reach the resistance (orange) level. The strong bearish momentum is suggesting that wave 5 (blue) has been completed. Due to the 5 bullish waves the larger degree has been labelled wave 1 (blue).

1 hour

The USD/JPY momentum could be explained via wave 3s. A wave 4 should be a shallow correction and relatively large as the wave 2 retracements were deep and short.

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