GBP/USD expands wave 4 towards 38.2% Fibonacci level 2016.02.02

EUR/USD

4 hour

The EUR/USD indeed bounced at the support trend line (green) and Fibonacci level. Price is now approaching the resistance level (orange) and top of the contracting triangle chart pattern. A break above resistance could see price move to higher Fibonacci targets.

1 hour

The EUR/USD broke above the inner resistance trend line (orange dotted). The bullish movement seems to be unfolding within an impulsive 5 wave (orange), which could be part of a larger ABC (green).

GBP/USD

4 hour

The GBP/USD is building a shallow angled bullish channel, which is indicated by the orange trend lines. Price bounced at the 78.6% Fibonacci level (X vs W) and is thereby expanding the retracement within wave 4 (purple).

1 hour

The GBP/USD could part of an ABC correction (pink) which expands wave 4 (purple).

USD/JPY

4 hour

The USD/JPY lost its momentum as multiple candles were not able to post a new high. The wave count is vulnerable to change if price breaks above resistance (red) or if it shows a bullish correction pattern in the near future.

1 hour

The USD/JPY is building a bearish correction (orange ABC) but will need to break below support (green) before more downside could be expected.