GBP/USD Rallies Sharply while EUR/USD Waits for Bounce 2015.05.08

EUR/USD

4 hour

The EUR/USD had a lot of momentum which is most likely a wave 3 (orange) and the most recent divergence (purple line) indicates a completion of wave 5 (orange) of a bigger wave A (green). The wave B (green) Fibonacci retracement levels are potential bouncing spots.

1 hour

Price could make an ABC (orange) zigzag correction within wave B (green).

GBP/USD

4 hour

The GBP/USD bounced strongly at the 50% Fibonacci of wave X (grey) and is headed towards the wave Y (grey) and wave B (black) targets with one major resistance level in the way (red).

1 hour

Within the wave Y (grey) there seems to be a strong bullish momentum that could be best explained by a 5 wave structure (magenta) that is part of a bigger ABC zigzag (green).

USD/JPY

4 hour

The USD/JPY is most likely still in the wave D (magenta), which is part of a bigger contracting triangle (ABCDE).

1 hour

The USD/JPY completed the wave X (green) and indeed bounced up after the ABC zigzag (purple), which could be part of the wave Y (green).