GBP/USD Bearish Breakout Faces Bullish ABC Zigzag

Chris Svorcik Elite CurrenSea

GBP/USD

4 hour

The GBP/USD broke above and below the local triangle pattern (dotted lines) but the major support (blue) and resistance (red) trend lines are still intact. A breakout is needed before a larger directional move can be expected.

1 hour

The GBP/USD is probably expanding the correction via an ABC zigzag correction (green) if price stays in between support and resistance trend lines. A break below the 100% Fibonacci level of wave B vs A invalidates the bullish ABC wave.

EUR/USD

4 hour

EUR/USD is expanding the wave 4 (blue) bullish retracement within the larger downtrend (red line).The Fibonacci levels of wave 4 (blue) could therefore act as a resistance zone. A break below the support trend line (blue) could indicate a potential bearish breakout within wave 5 (blue) of wave C (purple).

1 hour

The EUR/USD could be building an ABC (orange) zigzag correction within wave 4 (blue) after itbroke above the local resistance trend line (dotted orange).

USD/JPY

4 hour

The USD/JPYis still in its choppy bearish trend channel. A bullish breakout could test the resistance levels of wave X (pink). A bearish breakout could test the Fibonacci levels of wave 2 or wave B (light purple).

1 hour

The USD/JPY is testingthe resistance of the bearish channel (orange line) and previous tops (red line).

Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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