Daily Wave Analysis By Admiral Markets

[JoshDavis]

EUR/USD

4 hour

The EUR/USD showed a bearish turn at the 61.8% Fibonacci retracement level after which is broke the steep support trend line (dotted green). This could indicate the completion of wave 2 (brown) at the 61.8% Fib but a push higher could see price challenge the 78.6% Fib level of wave 2 vs 1. A break above 100% invalidates the wave count.

1 hour

The EUR/USD is building bearish momentum which seems to be part of a wave 3. Any pullback should not go above the 78.6% Fibonacci level of wave 4 (blue) otherwise price invalidates the current wave count by moving above the bottom of wave 1 (blue).

GBP/USD

4 hour

The GBP/USD will be impacted the Bank of England (BOE) rate decision on Thursday 4 August. The Cable is now building a contracting triangle (red/green). The breakout will decide whether the Cable is bullish or bearish. Price is either in a bearish 123 (pink) or in a bigger ABC retracement (purple).

1 hour

The GBP/USD retraced back for a wave B (purple) and the pushed further for a new higher high, which could complete wave C (purple). At the moment the bearish momentum could lead to the start of a new wave 1-2 (blue) but the break of the triangle (purple lines) will indicate whether price can test the next resistance (orange) or support (green) lines.

USD/JPY

4 hour

The USD/JPY is respecting the 78.6% Fibonacci level. A bullish bounce could indicate the completion of wave X (brown) whereas a bearish break could price fall further to test the 100% Fibonacci level.

1 hour

The USD/JPY is building a channel (blue line). A break above or below the support or resistance of the channel could indicate the start of a bearish or bullish breakout.

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[JoshDavis]

EUR/USD

4 hour

The EUR/USD has replaced the bullish impulse with the start of a bearish momentum. Price however needs to break below both support trend lines (green) before a continuation is possible.

1 hour

The EUR/USD seems to be building an ABC zigzag (green) within wave 4 (blue). Typically waves 4 are shallow retracements such as the 38.2% Fibonacci level. A break above the 61.8% and bottom of wave 1 (blue) invalidates the current wave count. A break below the support could see the continuation of the downtrend.

GBP/USD

4 hour

The GBP/USD was impacted by the Bank of England’s (BOE) decision to cut the interest rate from 0.5% to a record low of 0.25%. The Cable broke below the support level (dotted green) of the contracting triangle, which could trigger the start of more bearishness especially if price break below horizontal support and if it stays below the resistance (red).

1 hour

The GBP/USD made a strong bearish momentum yesterday which has been labelled as a wave 3 (blue). The wave 3 (blue) could still be ongoing but if a retracement does occur, then the Fibonacci levels of wave 4 (blue) should act as resistance.

USD/JPY

4 hour

The USD/JPY is respecting the 78.6% Fibonacci level. A bullish bounce could indicate the completion of wave X (brown) whereas a bearish break could price fall further to test the 100% Fibonacci level.

1 hour

The USD/JPY is building a channel (blue line). A break above or below the support or resistance of the channel could indicate the start of a bearish or bullish breakout.

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[GangGang]

Very nice markups, what do you use for news source releases?

[JoshDavis]

EUR/USD

4 hour

The EUR/USD seems to have completed a wave 2 (brown) correction but more bearish momentum is needed before this can be confirmed.

1 hour

The EUR/USD broke the support trend line (dotted green), which completed wave 5 (green) of wave 3 (blue). The current pullback is expected to turn at shallow Fibonacci levels of wave 4 (blue).

GBP/USD

4 hour

The GBP/USD keeps pushing lower with lower lows and lower highs. The bearish breakout is part of a wave 3 (pink) of wave 5 (blue) unless price breaks above the resistance line (red).

1 hour

The GBP/USD completed a wave 4 (grey) pullback as expected and then broke support levels (dotted green) to complete wave 5 (grey) of wave 3 (blue). The 4 (blue) retracement is expected to stop at shallow Fibonacci levels. A break above the 61.8% makes the current wave count unlikely.

USD/JPY

4 hour

The USD/JPY is respecting the 78.6% Fibonacci level by building a bullish channel, which could indicate the completion of wave X (brown). A bullish break above the resistance trend lines (orange/red) would confirm a larger uptrend, whereas a bearish break could price fall further to test the 100% Fibonacci level.

1 hour

The USD/JPY has not been able to break above or below the channel (blue). The breakout direction will indicate the short-term trend.

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[JoshDavis]

US Dollar cautiously developing bullish first wave

EUR/USD

4 hour

The EUR/USD is building a downtrend with lower lows and lower highs, which would be invalidated if price manages to break above the resistance trend line (red). A break below the support levels (greens) should see a continuation of the bearish momentum.

1 hour

The EUR/USD is building an ABC (green) correction within wave 4 (blue). A break below the support level (green) could spark the start of the 5th wave (blue) whereas a break above the 50% Fibonacci level makes the development of a wave 4 (blue) less likely.

GBP/USD

4 hour

The GBP/USD would need to reach at least the 100% Fibonacci level before a wave 3 (pink) is confirmed but for the moment a bearish breakout is pushing with lower with lower lows and lower highs.

1 hour

The GBP/USD completed a wave 4 (blue) pullback as expected and then broke support levels (dotted green) to continue with the bearish momentum of wave 5 (blue). Price could now be heading towards the Fibonacci targets of wave 5 (blue).

USD/JPY

4 hour

The USD/JPY broke above the smaller resistance (dotted pink), which is confirming the larger bullish bounce at the support trend line (green). Price is slowing developing a trend reversal but a break above resistance (orange/red) is needed before larger bullish moves could be expected.

1 hour

The USD/JPY seems to be building a bull flag chart pattern (green/red lines) within an impulsive wave 3 (pink or green).

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[JoshDavis]

EUR/USD, GBP/USD switch momentum direction after bullish breakout

EUR/USD

4 hour

The EUR/USD managed to break above the resistance trend line (dotted red), which has indicated has lead to a change in wave structure where wave 1 (purple) has been completed at the recent bottom. Wave 2 (purple) is invalidated if price manages to break above the 100% Fibonacci level.

1 hour

The EUR/USD broke the resistance with strong momentum which indicates a potential wave C (blue).

GBP/USD

4 hour

The GBP/USD bearish breakout below the support trend line (dotted green) has not shown the momentum which a wave typically has. Therefore, the wave count now shows a wave 4 (blue) completed at the recent top. Price is either completing a 5th wave (blue) or more likely expanding it via an internal 5 waves (pink) as shown in the image.

1 hour

The GBP/USD broke the resistance trend line (dotted red) and is building a bullish ABC zigzag (green).

USD/JPY

4 hour

The USD/JPY seems to be building a hook back to the support tend line (green). A bearish break would invalidate wave 1-2 (green) and revive the downtrend.

1 hour

The USD/JPY broke the support of bull flag chart pattern (dotted green) and is now at/near the Fibonacci levels of wave 2 (green).

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[JoshDavis]

US Dollar is close to completing wave 2 correction

EUR/USD

4 hour

The EUR/USD is now testing and challenging the 78.6% Fibonacci retracement level of wave 2 (purple). A break above the 100% level invalidates wave 2 (purple) and means that a larger wave 2 (brown) is still ongoing and active.

1 hour

The EUR/USD seems to be losing momentum at the Fibonacci resistance and has broken the steeply angled support trend line (green dotted). Price needs to break below the support trend line (green) before the completion of a wave 2 (purple) can be confirmed.

GBP/USD

4 hour

The GBP/USD remains in a downtrend with resistance indicated by the Fibonacci retracements of wave 2 (purple) and with targets indicated by the Fibonacci levels of wave 5 (blue).

1 hour

The GBP/USD completed the expected bullish ABC (green) zigzag. It could now be at a bullish bounce or bearish break spot. A bullish rally would enlarge the correction with a WXY (green). A break below the Fibonacci levels of wave X (green) could spark a wave 3 bearish momentum (pink).

USD/JPY

4 hour

The USD/JPY seems to be building a hook back to the support tend line (green). A bearish break would invalidate wave 1-2 (green) and revive the downtrend. A bullish bounce could see price rally to the Fibonacci targets of wave 3 (green) and the resistance trend lines (orange/red).

1 hour

The USD/JPY seems to be respecting the 78.6% Fibonacci level of wave 2 (green) and has broken the resistance trend line (dotted red).

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[JoshDavis]

Breakout direction to decide wave structure in Forex

EUR/USD

4 hour

The EUR/USD bounced at the deep Fibonacci retracement level of 78.6% within a wave 2 (purple). A break above the 100% level invalidates wave 2 (purple) and indicates a large and complex correction. In that case the wave count will be changed to reflect the corrective zone. A break below support could still confirm the potential waves 3 (purple/brown) but sufficient momentum must be visible in the breakouts.

1 hour

The EUR/USD has clear resistance (red/Fib) and support levels above and below price. A bearish break could start the impulsive waves (purple/blue) whereas a bullish breakout would indicate an ABC correction (purple).

GBP/USD

4 hour

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with a wave 1-2 (pink).

1 hour

The GBP/USD seems to have completed an ABC correction (blue) at the previous bottom, which has been labelled a wave X (green). A break below the support (green) and Fibonacci levels of wave X vs W invalidate the current wave count and indicate a downtrend continuation. A break above resistance (red) would most likely confirm a bullish rally for wave C (blue).

USD/JPY

4 hour

The USD/JPY indeed bounced at the support tend line (green). A bullish break above resistance (oranges) would confirm potential for a wave 3 rally (green).

1 hour

The USD/JPY has completed deep wave 2 pullbacks and might be starting with bullish momentum. A strong resistance level (red) however is nearby and a breakout is needed before the wave rally can develop.

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[JoshDavis]

EUR/USD bullish breakout in wave E of contracting triangle

EUR/USD

4 hour

The EUR/USD is testing the resistance trend line (red). A breakout above resistance could see price move towards the wave E (green) of wave 4 (blue), which has been added due to the lack of a bearish breakout. The consolidation zone on the daily chart is lengthy and suggests a contracting triangle chart pattern (ABCDE brown).

1 hour

The EUR/USD showed bullish momentum above the broken trend line (dotted red). Price is building an ABC bullish zigzag (blue) unless price breaks below the 100% Fibonacci level of wave B.

GBP/USD

4 hour

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with a wave 1-2 (pink).

1 hour

The GBP/USD seems to have completed an ABC correction (blue) within wave Y (green) of wave 2 (pink). A break above the 100% Fibonacci level invalidates wave 2 (green).

USD/JPY

4 hour

The USD/JPY bounced at the support tend line (green) but has not managed to move away from it and is challenging the same trend line again. A bullish break above resistance (oranges) would confirm potential for a wave 3 rally (green). A bearish break below the 100% Fibonacci level indicates a potential for a renewed bearish trend.

1 hour

The USD/JPY has to break above the resistance trend line (orange) before a wave 2 (green) can be considered completed. The 100% Fibonacci level is the invalidation point of the wave 2 (green).

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[JoshDavis]

USD/JPY bearish breakout expands wave B correction to 61.8% Fib

EUR/USD

4 hour

The EUR/USD is testing the resistance trend line (red) of a larger contracting triangle chart pattern (ABCDE brown). A bullish breakout could see price move towards the wave E (green) of wave 4 (blue).

1 hour

The EUR/USD needs to break support (green) or resistance (red) trend lines before momentum can be expected.

GBP/USD

4 hour

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with an internal 5 wave (pink).

1 hour

The GBP/USD is building a neat downtrend channel (trend lines). A break above the channel and 100% Fibonacci level invalidates wave 2 (green).

USD/JPY

4 hour

The USD/JPY broke below the support tend line (dotted greens), which confirms the bearish wave structure. Price seems to have space to fall towards the Fibonacci levels with main target at the 61.8% Fibonacci level of wave B vs A.

1 hour

The USD/JPY seems to be building a wave 3 breakout.

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[JoshDavis]

Major currency pairs boost sturdy momentum after breakout

EUR/USD

4 hour

The EUR/USD broke the resistance trend line (dotted) as expected in yesterday’s wave analysis. The bullish move is part of a larger contracting triangle chart pattern (ABCDE green).

1 hour

The EUR/USD broke the resistance (dotted) with strong momentum, which could indicate that it was a wave 3 (orange). In that case a wave 4 and 5 (orange) could unfold soon. The wave 4 (orange) structure is invalidated if price moves below the 78.6% Fibonacci level of wave 4 vs 3.

GBP/USD

4 hour

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with an internal 5 wave indicated by wave 1-2 (pink). A break below the previous bottom (green) is needed before an extension of the downtrend is confirmed.

1 hour

The GBP/USD broke the resistance (dotted ) trend line of the bearish channel with strong bullish momentum, which makes it likely that a bullish ABC zigzag (green) is taking place. If the wave A (green) has completed, then price could use the Fibonacci levels of wave B (green) as a potential support.

USD/JPY

4 hour

The USD/JPY has broken the support tend lines (dotted greens), but still needs to break below the previous bottom before a larger bearish continuation can be expected towards the 61.8% Fibonacci retracement level of wave B vs A.

1 hour

The USD/JPY has shown a strong bearish breakout as part of a wave 3 (pink) but the bullish correction has retraced all the way to the 61.8% Fibonacci level of wave 4 vs 3. A break above the 78.6% Fibonacci level invalidates the current wave structure. A break below the support trend line could start wave 3 (green).

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[JoshDavis]

EUR/USD, GBP/USD move impulsively towards Fibonacci targets

EUR/USD

4 hour

The EUR/USD is in a bullish momentum which is part of a larger contracting triangle chart pattern (ABCDE green).

1 hour

The EUR/USD showed a retracement back towards the 50% and 61.8% Fibonacci retracement level which completed wave 4 (orange). The wave 5 (orange) is heading towards the Fibonacci targets.

GBP/USD

4 hour

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with an internal 5 wave indicated by wave 1-2 (pink). A break below the previous bottom (green) is needed before an extension of the downtrend is confirmed.

1 hour

The GBP/USD indeed completed a wave B (green) correction and is moving higher as part of the wave C (green). A break of the resistance trend line (orange) or retest and bounce at the support trend line (green) could lead to bullish continuation towards the Fibonacci targets.

USD/JPY

4 hour

The USD/JPY is struggling to break the horizontal support of the previous bottom (green). Price will either break the support for a downtrend continuation or break above the resistance and potentially start a reversal.

1 hour

The USD/JPY needs to break below the Fibonacci levels of wave X vs W before a continuation of the bearish momentum is expected. At the moment a bullish ABC zigzag (green) seems the most likely scenario.
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[JoshDavis]

[B]EUR/USD, GBP/USD move impulsively towards Fibonacci targets[/B]

EUR/USD

4 hour

<img src=“https://s4.postimg.org/8k3c7p2t9/18_08_2016uj4.png”>

The EUR/USD is in a bullish momentum which is part of a larger contracting triangle chart pattern

(ABCDE green).

1 hour

<img src=“https://s4.postimg.org/8vhpll5v1/18_08_2016eu1.png”>

The EUR/USD showed a retracement back towards the 50% and 61.8% Fibonacci retracement level

which completed wave 4 (orange). The wave 5 (orange) is heading towards the Fibonacci targets.

GBP/USD

4 hour

<img src=“https://s3.postimg.org/5ii3wrnxv/18_08_2016gu4.png”>

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with an internal 5

wave indicated by wave 1-2 (pink). A break below the previous bottom (green) is needed before an

extension of the downtrend is confirmed.

1 hour

<img src=“https://s3.postimg.org/y1insd9oz/18_08_2016gu1.png”>

The GBP/USD indeed completed a wave B (green) correction and is moving higher as part of the

wave C (green). A break of the resistance trend line (orange) or retest and bounce at the support

trend line (green) could lead to bullish continuation towards the Fibonacci targets.

[JoshDavis]

EUR/USD, GBP/USD continue with bullish momentum in wave 3

EUR/USD

4 hour

<img src=“https://s3.postimg.org/3kgv3a8vn/19_08_2016eu4.png”>

The EUR/USD continued its strong bullish momentum yesterday and throughout the week. This

seems to have completed an impulsive wave 3 (green) and one more push higher (wave 5 green)

could occur if a corrective wave 4 (green) pattern develops.

1 hour

<img src=“https://s3.postimg.org/x3i5gu41f/19_08_2016eu1.png”>

The EUR/USD could bounce at the Fibonacci levels of wave 4 (green). A break below the 61.8%

Fibonacci level and trend line (green) invalidates the wave 4 (green).

GBP/USD

4 hour

<img src="https://s3.postimg.org/53ax9r5fn/19_08_2016gu4.png’’>

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with an internal 5

wave indicated by wave 1-2 (pink). Price has not reached the 61.8% Fibonacci level of wave 2 vs 1 but

a break above the 100% Fib level invalidates the pink 1-2. A break below the previous bottom (green)

is needed before an extension of the downtrend is confirmed.

1 hour

<img src="https://s4.postimg.org/y7rg31v8d/19_08_2016gu1.png’’>

The GBP/USD broke the resistance trend line (orange) yesterday and showed bullish impulsiveness as

expected within the wave C (green) zigzag. Price could now bounce at the Fibonacci levels of wave 4

(blue) but a break below the 61.8% Fibonacci level, however, invalidates the wave 4 (green).

[JoshDavis]

USD/JPY

4 hour

<img src=“https://s4.postimg.org/6nrm1mrv1/19_08_2016uj4.png”>

The USD/JPY will either break the support for a downtrend continuation or break above the

resistance and potentially start a reversal. Consider the struggle to break the horizontal support of

the previous bottom (green), a larger upside correction or reversal seems most likely.

1 hour

<img src="https://s3.postimg.org/6swjze6rn/19_08_2016uj1.png’’>

The USD/JPY indeed completed the wave A (green) and wave B (green) as shown yesterday. A break

above the resistance (red) should initiate wave C (green).

Follow*@ChrisSvorcik*on twitter for latest market updates

[JoshDavis]

EUR/USD, GBP/USD in waves 4 marked by trend lines

EUR/USD

4 hour

<img src=“https://s4.postimg.org/718ne2ysd/22_08_2016eu4.png”>

The EUR/USD has made a bearish retracement back to the 38.2% Fibonacci retracement level as
expected. The Fibonacci levels could provide support as part of a wave 4 (green). A break below the
61.8% Fibonacci level would invalidate the wave 4 (green) structure.

1 hour

<img src=“https://s9.postimg.org/esv7v1873/22_08_2016eu1.png”>

The EUR/USD has arrived at a spot where it could complete a bullish bounce at the Fib levels or
bearish break through the support trend line (green). A bullish break above resistance (red) could
indicate the start of wave 5 (green).

GBP/USD

4 hour

<img src=“https://s4.postimg.org/ipslhibm5/22_08_2016gu4.png”>

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with an internal 5
wave indicated by wave 1-2 (pink). The Cable turned at the 61.8% Fibonacci level of wave 2 vs 1 and
broke below the support trend line (dotted green), which could mark the start of wave 3 (pink) if
price manages to break the previous bottom (green). A break above the 100% Fib level invalidates
the pink 1-2.

1 hour

<img src=“https://s13.postimg.org/5ige6rlif/22_08_2016uj1.png”>

The USD/JPY is in a channel (orange/green). A break below the channel could indicate a downtrend
continuation and invalidate the current wave structure. A break above the channel could confirm the
development of a wave 3 (brown/blue).

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[JoshDavis]

US Dollar break unlocks bearish momentum

EUR/USD

4 hour

<img src=“https://s10.postimg.org/gh5e6g6tl/23_08_2016eu4.png”>

The EUR/USD used the 38.2% Fibonacci retracement level as a support for a bullish bounce at wave 4

(green). Price also broke above the resistance trend line (dotted red) which could indicate the

continuation of wave 5 (green).

1 hour

<img src=“https://s10.postimg.org/a5ml0zvnd/23_08_2016eu1.png”>

The EUR/USD is in a bullish break above resistance (dotted red) within wave 5 (green). A break below

the support trend line (green) would indicate that wave 5 (green) is most likely finished.

GBP/USD

4 hour

<img src=“https://s9.postimg.org/4ifix62db/23_08_2016gu4.png”>

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with an internal 5

wave indicated by wave 1-2 (pink). A break above the 100% Fib level invalidates the pink 1-2. For the

moment price seems to be expanding the bullish correction via a WXY (green) towards the resistance

trend line (red).

1 hour

<img src=“https://s10.postimg.org/u6k2p44ft/23_08_2016gu1.png”>

The GBP/USD broke the resistance trend line (dotted red) and not the support (greens) levels. The

bullish momentum has been marked as a wave A (blue) and a bullish zigzag could take place once

price breaks the new resistance (red).

Follow*@ChrisSvorcik*on twitter for latest market updates

[JoshDavis]

Fibonacci levels present breakout spots in Forex

EUR/USD

4 hour

<img src=“https://s16.postimg.org/ce2tx7jsl/24_08_2016eu4.png”>

The EUR/USD is in a contracting triangle chart pattern (red/blue lines) at the 61.8% Fibonacci retracement of wave E vs D. A bullish break could price make an extension of wave 5 (green) towards the 78.6% Fibonacci level. A bearish break (below blue) however could be a first indication that the ABC (purple) zigzag has been completed. A break below the other support lines (green) indicates the potential for a larger bearish reversal.

1 hour

<img src=“https://s9.postimg.org/wyix8ncmn/24_08_2016eu1.png”>

The EUR/USD is either expanding wave 4 (green) or it has completed wave 5 (green). A break above resistance (red) indicates a bullish continuation, whereas a break below the Fib levels of wave 4 vs 3 (green) indicates a completion of wave 4 (green).
GBP/USD

4 hour

<img src=“https://s16.postimg.org/c0mzx8het/24_08_2016_Gu4.png”>

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with an internal 5 wave indicated by wave 1-2 (pink). A break above the 100% Fib level invalidates the pink 1-2. For the moment price seems to be expanding the bullish correction via a WXY (green) towards the resistance trend line (red/orange).

1 hour

<img src=“https://s4.postimg.org/bw1oojmhp/24_08_2016_Gu1.png”>

The GBP/USD is struggling with the resistance trend line (orange) but a bullish break could see a continuation of wave C (blue) to the 78.6% Fibonacci level of wave 2 vs 1. A bearish break below support (green) would indicate that wave Y (green) is completed and start a bearish reversal.

Follow @ChrisSvorcik on twitter for latest market updates

[JoshDavis]

Fibonacci levels present breakout spots in Forex

EUR/USD

4 hour

<img src=“https://s4.postimg.org/975iupkh9/25_08_2016eu4.png”>

The EUR/USD is in a contracting triangle chart pattern (red/blue lines) at the 61.8% Fibonacci retracement of wave E vs D. A bullish break could price make an extension of wave 5 (green) towards the 78.6% Fibonacci level. A bearish break (below blue) however could be a first indication that the ABC (purple) zigzag has been completed. A break below the other support lines (green) indicates the potential for a larger bearish reversal.

1 hour

<img src=“https://s15.postimg.org/nwu38lh6z/25_08_2016eu1.png”>

The EUR/USD is either expanding wave 4 (green) or it has completed wave 5 (green). A break above resistance (red) indicates a bullish continuation, whereas a break below the Fib levels of wave 4 vs 3 (green) indicates a completion of wave 4 (green).

GBP/USD

4 hour

<img src=“https://s10.postimg.org/4u9qv53ex/25_08_2016gu4.png”>

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with an internal 5 wave indicated by wave 1-2 (pink). A break above the 100% Fib level invalidates the pink 1-2. For the moment price seems to be expanding the bullish correction via a WXY (green) towards the resistance trend line (red/orange).

1 hour

<img src=“https://s14.postimg.org/cnl9hebpd/25_08_2016gu1.png”>

The GBP/USD is struggling with the resistance trend line (orange) but a bullish break could see a continuation of wave C (blue) to the 78.6% Fibonacci level of wave 2 vs 1. A bearish break below support (green) would indicate that wave Y (green) is completed and start a bearish reversal.

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[JoshDavis]

EUR/USD bullish ABC zigzag faces robust resistance

EUR/USD

4 hour

<img src=“https://s9.postimg.org/myxe621q7/26_08_2016eu4.png”>

The EUR/USD remains in a large consolidation and the bearish breakout could take longer before materializing, which is the main reason why wave D (green) has been added. Once waves D (green) and E complete the triangle a strong bearish impulse is expected. For the moment price is respecting and pausing at the 61.8% Fibonacci retracement level. A bullish break above resistance (red) should see price move towards the 78.6% Fib. A bearish break below support (greens) at 1.1250 should see price start wave Y (brown) of wave D (green).

1 hour

<img src=“https://s3.postimg.org/5g9287neb/26_08_2016eu1.png”>

The EUR/USD is showing slow and corrective bullish price action which is one of the reasons why a bearish count is preferred unless price manages to break above resistance (red). At the moment an ABC zigzag (blue) to complete wave W (purple) and an ABC retracement (blue) within wave X (purple) seems to be taking place. However, if price shows strong momentum that breaks resistance (red), then yesterday’s wave count with a wave 5 remaining takes preference.

GBP/USD

4 hour

<img src=“https://s9.postimg.org/7xy36udfj/26_08_2016gu4.png”>

The GBP/USD bounced at the resistance top (red) of the daily downtrend channel. A break above this resistance (red) and the 78.6% Fibonacci retracement level makes the current wave count unlikely. In such a scenario the wave count would change to a larger ABC correction (purple). A break of support (green) confirms the bearish mode.

1 hour

<img src=“https://s14.postimg.org/9j4t6m21d/26_08_2016gu1.png”>

The GBP/USD could be starting a new bearish wave 1-2 (purple) but this scenario is invalidated if price breaks above the 78.6% Fib. A break below support (greens) could start a bearish breakout towards +/-1.30.

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