GBPUSD Breaks Consolidation Zone and Moves to Fib Levels 2015.10.08

EUR/USD

4 hour

The EUR/USD stayed in between the support (green) and resistance (red) trend lines and showed an overall choppy trading day yesterday. The choppiness could be explained by a wave B correction (blue) within a larger ABC (blue).

1 hour

A break above the resistance trend line (red) could be part of an ABC (blue) within wave Y (purple) of wave 2. A break of support invalidates the ABC structure.

GBP/USD

4 hour

The GBP/USD broke above the consolidation zone (dotted orange) and moved up to and respected the 38.2% Fibonacci retracement level. Considering the strong bullish momentum, the price action could be part of a larger ABC (green) within wave 2 (orange) and bring the correction up to a deeper Fibonacci retracement.

1 hour

The GBP/USD broke the resistance trend line (dotted red) in a strong and powerful wave 5 (blue).

USD/JPY

4 hour

The USD/JPY bearish turn has been a slow mover so far. Price still will need to break below the range before a bigger wave 3 (purple) thrust becomes more likely. A break of the top of the range (purple line) invalidates the current wave count with B (brown) and 1-2 (purple).

1 hour

The USD/JPY potentially retraced with one more wave 1-2 (orange) formation. The price action has been slow and choppy. A strong break below support (green) could be needed before the 1-2 formations become confirmed.