GBP/USD outlook after 1,000 pip decline
|EUR/USD
4 hour
The EUR/USD remains in a consolidation zone (red/green lines). A bullish break invalidates the current ABCDE (blue) triangle pattern. A bearish break could indicate a fall within a wave Y (purple) of wave d (green).
1 hour
The EUR/USD is showing a strong bullish impulse which has been marked as a wave A (green) but price also has strong resistance nearby. A failure to break higher could confirm a wav X (blue).
GBP/USD
4 hour
The GBP/USD decline most likely completed a wave 3 (green), although an extension of wave 3 is possible if the down trend continues soon. The alternative is that a wave 4 (green) retracement started. The Cable is expected to respect the Fibonacci levels of wave 4 vs 3.
1 hour
The GBP/USD could be starting a wave 4 correction, which is typically choppy and corrective. The Fibonacci levels are expected to act as support and resistance.
USD/JPY
4 hour
The USD/JPY broke above the resistance of the daily downtrend channel (dotted red) and a wave 3 seems to be developing (purple) but price still needs to break above the horizontal resistance of wave 1 (purple) before a higher high is seen.
1 hour
The USD/JPY seems to be building a wave 4 (brown) correction, which is expected to turn at the 38.2% or 50% Fibonacci level (green arrows). A break below the 61.8% Fib invalidates the wave 4 (brown). A break above resistance (red) could see the USD/JPY move towards the Fibonacci targets (green arrows).
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