GBP/USD Breaks Contracting Triangle Pattern in Bearish Channel

Chris Svorcik Elite CurrenSea

GBP/USD

4 hour

The GBP/USD is building lower lows and lower highs which makes a bearish ABC (grey) a bit less likely and a wave 123 (green) more probable, although a bearish breakout below support (blue) is still needed to confirm. The wave 4 (orange) correction is less likely if price breaks above the resistance trend line (yellow). A break below the support trend line (blue) increases the chance of a bearish break within wave 5 (orange).

1 hour

The GBP/USD broke the support trend lines (dotted blue) of the triangle chart pattern. Price will need to show bearish momentum and bear flag chart patterns to confirm a potential wave 3 impulse. Price would also need to break below the bottom of the bearish channel (blue).

EUR/USD

4 hour

The EUR/USD bounced at resistance trend lines (orange) of the larger triangle chart pattern. A break above resistance would confirm a bullish breakout within wave C of wave X (pink). A break below the support trend line (blue) will probably indicate a larger correction within wave 4 (light purple).

1 hour

The EUR/USD could be building a wave 1-2 (green) if price stays above the 100% Fibonacci level of wave 2 vs 1.

USD/JPY

4 hour

The USD/JPY stopped at the 78.6% Fibonacci resistance level but then failed to break below the support trend line which could either indicate a larger wave X (pink) or an uptrend continuation and an invalidation of the current wave patterns.

1 hour

The USD/JPYis approaching the resistance from the previous top (red).

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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