EUR/USD and GBP/USD Prepare for Momentum Extension 2015.07.23

EUR/USD

4 hour

The EUR/USD has bounced at the 61,8% Fibonacci retracement level which could be explained by a wave B (lavender). A potential continuation rally could face resistance at the trend line (red) or Fibonacci targets of wave C.

1 hour

The EUR/USD alternative wave count could be a developing 123 wave count. A wave C could typically stop at the 100% Fibonacci target.

GBP/USD

4 hour

The GBP/USD has shown a bullish recovery from the 38.2% Fibonacci level of wave X (green). A bullish break could see wave A (orange) start. A bearish break could see a deeper retracement of wave X (green).

1 hour

The GBP/USD showed bullish momentum yesterday which tentatively has been marked as a wave 1 (magenta). A bullish break is needed above resistance (red) to confirm the wave count. A break below the 100% of wave 2 invalidates it.

USD/JPY

4 hour

The USD/JPY could be building an ABC (lavender) formation within wave X (green).

1 hour

The USD/JPY has completed wave A (lavender) yesterday which was followed by a rally for wave B. A failure to push above the trend line (orange) could indicate that price is now in wave C.