GBP/USD and USD/JPY build pullback within downtrend 2016.02.26

EUR/USD

4 hour

The EUR/USD made a bullish bounce at the 61.8% Fibonacci retracement level and support trend line (green). A break below support could see price fall towards the 78.6% Fibonacci level. A break above resistance (red) could see price move towards Fibonacci targets (Y vs W).

1 hour

The EUR/USD break above the resistance trend line (orange) could indicate the completion of wave X (purple).

GBP/USD

4 hour

The GBP/USD is making a bullish retracement within the bearish trend. A potential resistance is the previous support level (red).

1 hour

The GBP/USD could still be in a wave 4 (grey) especially if price stays below the 50% or 61.8% Fibonacci. A pullback as deep as the 78.6% or more means that wave 5 (grey) has most likely already been completed as a truncated last wave (truncate is lack of breaking the bottom of wave 3).

USD/JPY

4 hour

The USD/JPY made a bullish bounce at the bottom (solid green). It remains unclear whether wave X (brown) has been completed or whether a larger correction upwards could unfold. A break below the bottom makes it more likely that price has completed that wave X and is in wave Y (blue).

1 hour

The USD/JPY seems to have completed a bullish ABC zigzag (green). This could also lead to the completion of wave X (brown) or be part of an expanded correction, which could become evident how price responds to the support trend line (bounce or break).