GBPUSD Prepared for Bullish Wave 5 Breakout 2015.10.19

EUR/USD

4 hour

Whether the EUR/USD completed its bullish price action and thereby wave 2 or wave B (greens) depends on whether price is able to push below the various layers of support (green trend lines).

1 hour

The EUR/USD is in a mini triangle chart formation (red / green lines). It has wave 2 resistance Fib levels above it and support trend lines below it. At the moment a bearish turn seems the most likely wave count (current 1-2 orange).

GBP/USD

4 hour

The GBP/USD has not managed to break the resistance trend line (red) but if price does break it, then another resistance zone is higher at the 78.6% and 88.6% Fibonacci retracement. A move up towards that level could complete the expected ABC formation (green). A break above the 100% level invalidates the wave 1-2 (orange). A break below the support trend line (green) is needed before a wave 3 or C (green) becomes more likely.

1 hour

The GBP/USD is building a wave 4 (blue) consolidation zone. A break above resistance (orange) would increase the chance of the development of a wave 5 (blue). A break below the 50% Fibonacci retracement level increases the likelihood that the ABC (green) has already been completed.

USD/JPY

4 hour

The USD/JPY price action was not able to push away from the consolidation zone and price reverted back to the moving averages.

1 hour

The USD/JPY's bullish rally developed in 5 waves, which could be explained by an ABC (green) rally within a larger wave 2 (green) correction.