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    GBP/USD plunges below 1.30 support after historic breakout

    July 06, 2016 07:15

     

    EUR/USD

    4 hour

    The EUR/USD is breaking below the support trend line (dotted green) after bouncing at the 50% Fibonacci retracement level of wave 2 (brown). Price could now fall to challenge the 1.08 support level (green). A wave 3 (brown) becomes more likely if price manages to break below that support and the 100% Fibonacci target of wave '3 vs 1'.

    1 hour

    The EUR/USD wave 3 (purple) is invalidated if price were to break above the top of waves 2 (brown/purple).

    GBP/USD

    4 hour

    The GBP/USD broke the consolidation pattern by pushing below the support trend line (dotted green). Price is now in a bearish momentum heading towards the bearish Fibonacci targets.

    1 hour

    The GBP/USD has reached the 161.8% Fibonacci target of wave '3 vs 1', which could be the spot where a wave 3 (green) is completed. In that case price could retrace for a wave 4 (green) back to the Fibonacci retracement levels. The other scenario is that price continues with the bearish momentum towards the next Fibonacci targets of wave '3 vs 1'.

    USD/JPY

    4 hour

    An USD/JPY break below the 100 price level increases the chances of a breakout towards the 61.8% Fibonacci support at 95 whereas a bounce at or above 100 could indicate a larger wave B (green) or a change of wave structure (once above 100% at 106.84).

    1 hour

    If the USD/JPY could have completed wave 3 (pink), then price is expected to retrace back to the Fibonacci levels of wave 4 (pink). The invalidation level is the 78.6% Fib of wave '4 vs 3' but the most common Fibs are 38.2% and 50%. The other scenario is that price continues with the bearish momentum towards the next Fibonacci targets of wave 'C vs A'.

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