GBP/USD tests 1.35 resistance with ABC rally 2016.07.15

EUR/USD

4 hour

The EUR/USD remains in a corrective zone (trend lines) which is a contracting wedge chart pattern. 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 completed the bullish ABC zigzag (green) within wave Y (green) yesterday after which is moved back down due to the resistance (orange) trend line. An expansion of the contracting wedge chart pattern (trend lines) seems the most likely scenario and hence an ABC (green) could develop to complete a wave X (blue).

GBP/USD

4 hour

The GBP/USD did not yet break above the 100% level of '2 vs 1' despite the bullish price action yesterday. A push above the 100% Fib level invalidates the current wave count of 1-2 (pink). A break below the support trend line (green) would most likely confirm the start of wave 3 (pink).

1 hour

The GBP/USD broke the resistance trend line level (dotted red) of the bullish channel (green/red), which sparked an ABC (green) rally. The bullish price action occurred after the Bank of England (BOE) rate decision which remained at 0.5% and was not lowered to 0.25%.

USD/JPY

4 hour

The USD/JPY broke the resistance trend line (red) and is moving quickly to the next Fibonacci levels.. 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 broke above the bull flag which indeed sparked the start of wave 5 (orange). Price seems to have completed a wave 3 and 4 (purple) in the meantime and price could push up higher to test the Fibonacci targets of waves 5 (orange/purple).

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