GBP/USD Builds Contracting Triangle in Descending Wedge

November 10, 2017 05:00

GBP/USD

4 hour

The GBP/USD is testing the Fibonacci levels of wave 4 (orange). A break above the 61.8% Fib makes a wave 4 (orange) less likely whereas a break below support could indicate a bearish breakout. Price is building a smaller triangle in a larger wedge pattern (red/blue lines).

1 hour

The GBP/USD is in a contracting triangle which is marked by clear support (green) and resistance (orange).

EUR/USD

4 hour

EUR/USD is making a larger bullish retracement within the downtrend. The Fibonacci levels of wave 4 (blue) could act as resistance if price breaks above the trend line (orange). A break below the support trend line (blue) could indicate a potential bearish breakout within wave 5 (blue).

1 hour

The EUR/USD seems to be building an ABC (orange) within a wave 4 (green) correction.

USD/JPY

4 hour

The USD/JPY broke below the support trend line (dotted blue) but price action remains choppy. The failure to break the 114.50-115 resistance zone so far could be an early indication that wave 1 or A (light purple) has been completed.

1 hour

The USD/JPY is behaving choppily and building a corrective pattern on this 1-hour chart.

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