GBP/USD plunges in bearish wave-3 after rate cut to record low 2016.08.05

EUR/USD

4 hour

The EUR/USD has replaced the bullish impulse with the start of a bearish momentum. Price however needs to break below both support trend lines (green) before a continuation is possible.

1 hour

The EUR/USD seems to be building an ABC zigzag (green) within wave 4 (blue). Typically waves 4 are shallow retracements such as the 38.2% Fibonacci level. A break above the 61.8% and bottom of wave 1 (blue) invalidates the current wave count. A break below the support could see the continuation of the downtrend.

GBP/USD

4 hour

The GBP/USD was impacted by the Bank of England's (BOE) decision to cut the interest rate from 0.5% to a record low of 0.25%. The Cable broke below the support level (dotted green) of the contracting triangle, which could trigger the start of more bearishness especially if price break below horizontal support and if it stays below the resistance (red).

1 hour

The GBP/USD made a strong bearish momentum yesterday which has been labelled as a wave 3 (blue). The wave 3 (blue) could still be ongoing but if a retracement does occur, then the Fibonacci levels of wave 4 (blue) should act as resistance.

USD/JPY

4 hour

The USD/JPY is respecting the 78.6% Fibonacci level. A bullish bounce could indicate the completion of wave X (brown) whereas a bearish break could price fall further to test the 100% Fibonacci level.

1 hour

The USD/JPY is building a channel (blue line). A break above or below the support or resistance of the channel could indicate the start of a bearish or bullish breakout.

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