EUR/USD and GBP/USD Encounter Heavy Layers of Sturdy Resistance

EUR/USD

4 hour


The EUR/USD closed with a strong 4 hour bullish momentum bar/candle but a confluence of resistance is nearby such as the red and brown horizontal levels, the 138.2% Fib, and the 1.15 round number.

1 hour


The EUR/USD broke the resistance trend line (orange dotted) and made a bullish move up to the top (red line), which is a break (for waves 4&5) or bounce spot (wave C is completed).

GBP/USD

4 hour


The GBP/USD remains in the 5th wave (green) of wave A (blue) but reached the 1.5750 resistance zone. A push above the current high at 1.5775 could indicate more upside as part of wave 5 up to the wave B and wave Y targets, whereas a strong bearish candle could indicate the completion of the wave 5 (green).

1 hour


The GBP/USD uptrend could be losing steam as the angle of the orange trend line is shallower than the channel angle. A break above the orange resistance trend line could see price accelerate towards the Fibonacci targets, whereas a break below the channel could be an early indication of the end of wave A (blue).

USD/JPY

4 hour


The USD/JPY broke through the support trend line (blue) as expected which is probably part of the wave E (magenta).

1 hour


The USD/JPY could be building on a bearish ABC zigzag (purple).

 
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