GBP/USD Challenges Resistance of Downtrend Channel after 1.2775 Bounce

GBP/USD

4 hour

The GBP/USD is testing the resistance line of the downtrend channel (red) after indeed bouncing near the round quarter support level of 1.2750. A bullish breakout could start wave A (purple) of a larger wave 2 (red) correction. A bearish break below support (blue) and the 1.2750 support could restart the downtrend within the channel.

1 hour

The GBP/USD broke above the resistance trend line (dotted orange) and could be starting a wave A (purple) correction if price manages to break above the next resistance trend lines and stay above support (blue).

EUR/USD

4 hour

The EUR/USD is building an extended and complex correction within wave 4 (green). Price is still challenging the resistance trend line (red) of the triangle chart pattern and the next breakout above resistance (red) should see the continuation of wave 3 (blue). Price could also retest the support trend lines (green/blue) within wave Y (purple).

1 hour

The EUR/USD is building a sideways correction and has both support (green) and resistance (red) nearby. There is the possibility of an ABC (brown) correction before wave 4 (green) is ready but a break above the major resistance (red) would indicate a potential bullish breakout.

USD/JPY

4 hour

The USD/JPY is again bouncing at the support zone (green lines). A bounce could see price move higher towards the Fib levels of wave B vs A whereas a bearish break could indicate a downtrend continuation.

1 hour

The USD/JPY is building a channel (red/blue lines) at the support zone (green).

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