GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, after reaching 61.8% fibo at 1.3991, GBPUSD is falling. As long as the pair is trading above the low at 1.3572, this descending movement should be considered as a correction. However, if the price finally breaks the low, the closest downside target will be the mid-term 38.2% fibo at 1.3419. On the other hand, the price may rebound from the low and resume trading upwards to reach 61.8% and 76.0% fibo at 1.3991 and 1.4087 respectively.
The H1 chart shows a more detailed structure of the descending correction, which has already reached 38.2% fibo and is currently testing it. The next downside targets may be 50.0%, 61.8% and 76.0% fibo at 1.3747, 1.3713, and 1.3671 respectively. The resistance is the local high at 1.3892.
EURJPY, “Euro vs. Japanese Yen”
In the H4 chart, the asset is still correcting upwards after a test of 50.0% fibo at 127.87 and convergence on MACD. At the moment, the price is returning to 23.6% fibo, which may serve as the local resistance. After the pullback is over, the pair may resume falling towards the mid-term 61.8% fibo at 126.40. The resistance is the high at 134.12.
The H1 chart shows a more detailed structure of the correctional uptrend. After a thorough test of 38.2% fibo, the asset is heading towards 50.0% at 131.02, a breakout of which may result in a further uptrend to reach 61.8% fibo at 131.75. After that, one may expect divergence on MACD to indicate a new descending wave towards the low at 127.93.
