GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, GBPUSD was quickly growing to correct the previous downtrend and almost reached 61.8% fibo at 1.3212 but then suddenly reversed and started a new pullback. Such market behavior doesn’t provide a clear understanding of what might happen later. One scenario implies that the pullback may transform into a descending wave and reach 1.2725 or even 61.8% fibo at 1.2700. Another scenario suggests that the instrument may stop falling and update its previous high. In this case, the next upside targets may be 61.8% and 76.0% fibo at 1.3212 and 1.3324 respectively.
In the H1 chart, the descending wave has already reached 61.8% fibo. The next downside target is 76.0% fibo at 1.2839. If the price fixes below this level, it may continue falling towards the low at 1.2725.
EURJPY, “Euro vs. Japanese Yen”
As we can see in the daily chart, the descending wave attempted to reach and test the long-term low at 115.86. If the price breaks the low and fixes below it, the pair may continue falling towards the post-correctional extension area between 138.2% and 161.8% fibo at 113.18 and 111.54 respectively. However, after reaching the low, the instrument rebounded from it, which may indicate a continuous sideways channel.
In the H1 chart, EURJPY is correcting to the upside, it has already reached 61.8% fibo and may yet grow towards 76.0% fibo at 119.78. If later the price reaches 120.95, the long-term tendency may reverse. The support is at 116.12.