GBP/USD's 3rd Wave Creates 300 Pip Bullish Break
GBP/USD
4 hour
The GBP/USD bullish breakout above the resistance trend line (dotted orange) and 1.40 round level has been very strong so far. The Cable gained 300 pips in just a couple of 4 hour bars and is not showing any signs of weakness as yet. The current bullish wave is probably a wave 3 (light green).
1 hour
The GBP/USD bullish breakout is probably building an expansion of the wave 5 (grey) with an internal 5 wave (gold). Once the 3rd wave (gold) has been completed, a retracement towards and a bounce at the Fibonacci levels of wave 4 (gold) seems likely.
EUR/USD
4 hour
The EUR/USD bullish breakout is indeed sending price towards the next targets at 1.24 and 1.25. The bullish looks strong and could make one more push towards the next Fibonacci target. At the moment the current bullish push is probably part of a wave 3 (purple).
1 hour
The EUR/USD is moving higher in a bullish channel marked by support (blue) and resistance (red) trend lines. Price is now probably in a wave 5 (brown) of wave 3 (orange). Once this wave is completed, price could make a retracement as part of a wave 4 (orange) and use the Fibonacci levels of wave 4 vs 3 as support.
USD/JPY
4 hour
The USD/JPY is in a bearish momentum which is probably part of a wave 2 or B (light purple).
1 hour
The USD/JPY downtrend channel broke below the -27.2% Fibonacci target and could be moving towards the next Fibonacci level at 108.34.
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