EUR/USD and GBP/USD waves explain bullish breaks 2016.03.29

EUR/USD

4 hour

The EUR/USD has bounced at the 38.2% Fibonacci level of wave X (blue) and has broken above the resistance (dotted red) trend line.

1 hour

The EUR/USD could have started a wave 3 (green) or C within wave A (blue). A break below the support trend line (green) would change the wave 123 (green) into an ABC.

GBP/USD

4 hour

The GBP/USD is building a larger bounce, which could still be part of a wave 4 (green). This wave count is invalidated if price breaks above the 78.6% Fibonacci level. In that case the 123 (green) will become an ABC. A bearish break below the support trend line could see a bearish continuation.

1 hour

The GBP/USD broke above the resistance (dotted red) of contracting triangle chart pattern and made a bullish zigzag towards the Fibonacci levels. The next price movement could depend on how price responds to these Fibonacci targets. A bearish impulse could indicate a chance that support will break. A bull flag chart pattern however could indicate that the bullish momentum is just pausing.

USD/JPY

4 hour

The USD/JPY's bullish channel remains intact and price has now reached the 100% Fibonacci level and resistance trend line (orange). A bullish break invalidates wave B (blue). A bearish break could indicate the completion of wave B (blue).

1 hour

The USD/JPY will either invalidate the wave B (blue) or eventually make a bearish turn at resistance. For the moment the wave count has been labeled as wave 1-2 (orange) but a bearish break is needed before this wave count can be confirmed.