GBPUSD in decisive zone according to waves and trend lines 2016.04.22

EUR/USD

4 hour

The EUR/USD is showing choppy price action between support (green) and resistance (orange) trend lines. Price remains entrapped between these levels and mark the boundaries of the corrective zone. A push below the 50% Fibonacci retracement level of wave X (purple) makes the current wave count less likely and a bearish variant more likely.

1 hour

The EUR/USD break above resistance (orange) indicates a completion of the ABC (orange).

GBP/USD

4 hour

The GBP/USD has respected the confluence so far at the resistance trend line (red) and 61.8% Fibonacci target, which could be a vital and crucial long-term bounce or break spot. A break above resistance (red) indicates that the wave Y's are not yet completed. A break below support (light green) indicates that a new bearish wave structure could emerge.

1 hour

The GBP/USD indeed made one more bullish push yesterday via a wave 5 after completing wave 4 (grey). The wave 5 posted a higher high but the oscillator is showing a lower high, which has caused strong divergence (purple lines). A break above the 100% Fib level invalidates the bearish wave 1-2 structure. A break below the support trend lines (green) increases the chance of a bearish continuation.

USD/JPY

4 hour

The USD/JPY heading towards the Fibonacci targets of the wave Y (pink) correction.

1 hour

The USD/JPY bullish break of the resistance trend line (dotted red) indicates a continuation of the bullish ABC (orange) zigzag.