GBP/USD bullish zigzag tests deep Fib retracement levels 2016.11.22

EUR/USD

4 hour

The EUR/USD downtrend seems to be running out of momentum as price approaches bottoms (green) from the daily chart. A break above the resistance trend line (orange) could start a wave 2 (green) correction.

1 hour

The EUR/USD continues to build a bear flag chart pattern (red/green). A bearish break could see price test the 1.05 support zone. A bullish break above resistance (orange) could indicate the completion of wave 1 (green) and continue with the wave 2 (green) correction.

GBP/USD

4 hour

The GBP/USD did not manage to break below the support trend line (green) and in fact showed a bullish bounce. Price then broke above the resistance trend line (dotted red) which makes a wave 2 (blue) retracement likely.

1 hour

The GBP/USD is most likely building an ABC (orange) zigzag correction within wave 2 (blue). Price could complete the wave 2 at the Fibonacci retracement levels although a break above the 100% level invalidates the current wave count.

USD/JPY

4 hour

The USD/JPY bullish momentum is taking price to the Fibonacci targets. The uptrend seems to be slowing down slightly, which could indicate that a wave 3 (blue) is near completion and that a wave 4 (blue) retracement could soon start.

1 hour

The USD/JPY could be ready to build an ABC (brown) correction within wave 4 (blue) unless price breaks above resistance (orange).

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