GBP/USD and USD/JPY bullish pullbacks in down trend 2016.01.26

EUR/USD

4 hour

The EUR/USD has shown a bullish bounce at support (green). A break below support could see price fall towards the Fibonacci levels.

1 hour

The EUR/USD bounce could be part of a larger correction up to resistance (red) which could be marked as wave 1 or A. The break below support invalidates this wave count.

GBP/USD

4 hour

The GBP/USD has reached the top of the larger downtrend channel, which has created a bearish bounce. The bearish price action, however, has acted corrective so far, which increases the chances of a larger WXY (green) correction taking place.

1 hour

The GBP/USD seems to be in a bearish ABC (blue) zigzag within wave X (green). A break of resistance could initiate a bigger bullish correction as part of wave Y (green). The Fibonacci levels are potential bouncing spots.

USD/JPY

4 hour

The USD/JPY is labeled as a wave X (green) correction. Price could retrace to higher Fibonacci levels before completing the correction.

1 hour

The USD/JPY seems to have completed the bullish ABC zigzag (pink) and price is now showing a bearish correction. The trend lines will help measure whether price is able to push higher as part of a larger wave X (green) or break below support (green) to potentially complete wave X (green).