EUR/USD’s Bullish Bounce, GBP/USD’s Tumble Lower 2016.01.20

EUR/USD

4 hour

The EUR/USD bounced as part of the wave X (blue) support and indeed seems to be expanding the WXY correction. The trend line (orange) at 1.10 is an important resistance spot. A break above that could see price continue its bullish price action towards the 100% Fibonacci levels and thereafter perhaps to the higher Fib targets.

1 hour

The EUR/USD bounced at the confluence of 61.8% Fibonacci retracement and 100% Fibonacci target levels.

GBP/USD

4 hour

The GBP/USD keeps pushing the downtrend to new extremes and price is now approaching the 261.8% Fibonacci target at 1.3942 of wave 3 versus wave 1 (purple).

1 hour

The Cable is building wave extensions within that wave 3 and yesterday made an impulsive bearish fall after hitting the 50% Fibonacci retracement level of wave 4 (grey). There could be another 5 wave extension taking place within the wave 5 (grey) if price respects the Fibonacci levels of the wave 4 (blue circle) and resistance trend line (orange).

USD/JPY

4 hour

The USD/JPY showed a bearish bounce at the resistance trend line (orange) yesterday and price is falling back towards the horizontal support (green) and bigger weekly bottom (blue). A break below the support levels indicates the potential for a downtrend continuation.

1 hour

The USD/JPY seems to be building a bearish ABC zigzag (green) as part of wave X (blue). If price does show a bullish bounce at the Fibonacci levels, then price could expand wave Y (brown) of wave X (green).