GBP/USD Bearish Momentum towards 1.22 Break or Bounce Spot

GBP/USD

4 hour

The GBP/USD broke the support trend line (dotted green) and thereby completed a 3 wave WXY (orange) correction within wave 4 (blue). A break of the bottom (blue line) could spark the continuation of the downtrend (waves 5) and a retest of the bigger bottoms from 2016 (green).

1 hour

The GBP/USD is displaying strong bearish momentum which is most likely a wave 3 (orange). Within that wave 3, price is most likely building 5 extended waves (grey/brown) but a break of the bottom (blue) remains critical. If the bottom does break, a mild wave 4 correction (dark red) would indicate that another bearish push is around the corner to complete wave 3 (orange).

EUR/USD

4 hour

The EUR/USD is building a sideways corrective zone, which is occurring around the broken bottoms from the weekly chart (dotted green). The correction has been labelled as a wave 2 (brown), which would be invalidated if price breaks above the 100% Fibonacci level of wave 2 vs 1.

1 hour

The EUR/USD could be showing a bearish turn at the 50% Fibonacci level of wave 2 vs 1. A break below the support (green) could initiate a wave 3 (purple) and retest of support (blue). A break above resistance (red) could indicate that price will correct to a higher Fib level of wave 2 (brown).

USD/JPY

4 hour

The USD/JPY could be building a larger ABC (blue) correction within wave 4 (purple), unless price manages to break above the previous top (dark red line). In that case the ABC (blue) zigzag is invalidated and an uptrend continuation is taking place.

1 hour

The USD/JPY indeed made a bullish turn at 115, broke above the resistance line (dotted red), and price is now testing the Fibonacci levels of wave B (blue) and wave C (brown).

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