GBP/USD Builds Classic Contracting Triangle Chart Pattern
|GBP/USD
4 hour
The GBP/USD failed to break above resistance (red) several times which makes it more likely that an ABCDE (purple) contracting triangle chart pattern is taking place on the charts. The above chart is showing the bearish version of the triangle pattern but it primarily depends on whether price breaks above resistance (red) or below support (blue).
1 hour
The GBP/USD will need to finally show a breakout before a larger bullish or bearish move can be possible. A bearish breakout could see price fall down to the 61.8% Fibonacci level of wave B vs A at 1.2250. A bullish break above 1.25 could see price move towards the next resistance trend line (brown) on the 4 hour chart at 1.26.
EUR/USD
4 hour
The EUR/USD is at the Fibonacci levels of wave X (blue) which could be a bouncing zone if price is building a complex WXY correction within a larger wave 2 (puple). The Fibonacci levels of wave 2 (purple) could therefore also act as resistance. A break above the 100% level of wave 2 vs 1 invalidates the wave 1-2 (purple).
1 hour
The EUR/USD could be complete a bearish ABC (green) within wave X (blue) at the 61.8% Fibonacci level. A break above the resistance trend line (red/orange) would confirm that whereas a break below the support trend line (green) makes the scenario unlikely.
USD/JPY
4 hour
The USD/JPY bounced at the 61.8% Fibonacci support level of wave 2 vs 1. A break below the 100% level would invalidate this wave 1-2 structure. A breakout above resistance (red) and the round 115 psychological level could confirm and start the wave 3 (blue). Wave 2 (blue) could expand potentially into a larger correction as well (see 1 hour chart).
1 hour
The USD/JPY could be completing a bearish ABC (brown) zigzag within wave 2 (blue). A break above the red line invalidates wave B (brown). There could be another ABC zigzag (orange) within wave that wave B (brown).
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