Wave Count after GBP/USD Plunge below Support 2015.08.27

EUR/USD

4 hour

The EUR/USD bullish run has respected the long-term 38.2% Fibonacci retracement level of wave 4 (blue). The wave 5 could therefore turn out to be relatively choppy price movement as price retests a strong resistance zone.

1 hour

A deeper bearish retracement than the current 61.8% level might need to lead a change of the current wave count. The current wave count is expecting one more push up for wave 5 (light blue) due to the strong bullish momentum marked as wave 3 (light blue).

GBP/USD

4 hour

The GBP/USD showed very strong bearish momentum yesterday when breaking below the support trend line (dotted green). The momentum is even challenging the next support trend line (light green). Due to strong impulsiveness the wave count has marked many wave Y's as completed with the exception of the largest wave Y (purple). That wave will only be considered finished when price is able to break below the trend line and horizontal support (dark green).

1 hour

The strong bearish momentum is indicating the likelihood of a wave 3 (pink) followed by a wave 4 (pink) retracement.

USD/JPY

4 hour

The USD/JPY's showed bearish momentum earlier this week, which is most likely explained by wave 3 (purple). For the moment the wave count is indicating that the current retracement could be a wave 4 (purple) after which price can fall for a wave 5.

1 hour

The USD/JPY is building an expanded wave 4 (purple) via a WXY correction (blue).