GBP/USD completes wave-4 at 50% Fib and breaks support 2016.07.08

EUR/USD

4 hour

The EUR/USD needs to break below the support (green lines) levels before a wave 3 (green) continuation is possible and likely. For the moment a larger wave 2 (brown) correction seems to be taking place via a WXY (purple). A break above the 100% Fib at 1.1428 invalidates wave 2 (brown).

1 hour

The EUR/USD seems to indeed be building an ABC (blue) bullish zigzag. The wave C (blue) however could quickly run into resistance when considering the Fibonacci levels.

GBP/USD

4 hour

The GBP/USD showed bearish engulfing twins on this 4-hour chart as price broke below the small trend line (dotted green). A break below 1.28 increases the chance of a wave 5 (blue) continuation.

1 hour

The GBP/USD wave 4 (green) retracement stopped indeed at the 50% Fibonacci level. A wave 1-2 (orange) seems the most likely scenario at the moment but a break above the 100% level at 1.3047 invalidates the wave count. A push below the wave 1 (orange) bottom could initiate the fall towards the wave 5 (green) targets.

USD/JPY

4 hour

An USD/JPY is close to breaking below the 100 round level, which increases the chances of a bearish breakout towards the 61.8% Fibonacci support of wave 'B vs A' at 95.

1 hour

The USD/JPY broke below the support (green) trend line, which signals a completion of the wave 4 (pink) and start of wave 5 (pink). A break below the 100 round level and 78.6% Fib would help confirm the breakout. The current wave structure is invalidated if price breaks above the orange trend line.

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