EUR/USD’s ABC Zigzag, GBP/USD’s Bear Flag Pattern 2016.01.21

EUR/USD

4 hour

The EUR/USD showed a bearish bounce at the resistance trend line (orange), which is the top zone of the correction. Price has now approached the bottom of wave A which is the 100% Fibonacci level.

1 hour

The EUR/USD could have posted an ABC zigzag correction (orange). A bullish bounce at support (green) could see price head back up for wave C (green). Both support (green) and resistance (orange) trend lines are important boundaries.

GBP/USD

4 hour

The GBP/USD downtrend has accelerated as indicated by the angle of the inner trend line (orange) when compared to the trend channel (red). Price is now building a consolidation zone which is marked by yellow and light green trend lines.

1 hour

The consolidation zone is a bear flag chart pattern. A break below the flag could see price fall towards Fibonacci targets. A break above the flag could stop at the resistance trend line (orange). A break above the 78.6% Fibonacci level invalidates the wave 4 structure.

USD/JPY

4 hour

The USD/JPY showed a strong bearish bounce at resistance (orange) and a strong bullish bounce at support (blue). The pattern could be a corrective zone indicated by the WXY (brown) within wave X (green).

1 hour

The USD/JPY's bullish 5 wave (pink) is invalidated if price breaks below the top of wave 1 (purple).