EUR/USD and GBP/USD diverge on upcoming breakout direction 2016.07.19

EUR/USD

4 hour

The EUR/USD is indeed using the support (green/Fib) for a bullish bounce and continuation within wave 2 (brown). The wave 2 (brown) becomes invalidated if price manages to break above the top at 1.1425 whereas wave 3 (green) could start if price manages to break below support (green line).

1 hour

The EUR/USD indeed bounced for a wave B (green) at the support trend line (green) as expected in yesterday's wave analysis. Price is now in a wave C (green) but faces resistance from a trend line (red). A breakout could see price head towards the Fibonacci targets of 'C vs A' and even the bigger trend line (orange).

GBP/USD

4 hour

The GBP/USD is building a contacting triangle chart pattern which is indicated by the support (green) and resistance (red) lines. A break above resistance invalidates wave 2 (pink) whereas a break below support makes a wave 3 (pink) continuation likely.

1 hour

The GBP/USD seems to be building a bearish impulse. A break above the 61.8% Fibonacci level of wave 4 (blue) invalidates the current wave count. A break below the support trend line (green) would see the completion of wave 5 (blue) of most likely a wave 1 (within wave 3 (pink)).

USD/JPY

4 hour

The USD/JPY rally seems to be in a wave B (grey) pullback before more upside could be expected within wave C (grey). A break above the 161.8% target would indicate a bullish reversal and a change of the wave count from WXY (pink) to a 123.

1 hour

The USD/JPY completed several ABC zigzags recently within a larger WXY (orange) correction. Price is now building a correction within wave B (grey) most likely. A break of the support trend line (green) could price expand wave B (grey).

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