Sat, Feb 07, 2026 12:27 GMT
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    HomeContributorsTechnical AnalysisGBP/USD Retraces To 61.8% Fibonacci Level Of Wave-2

    GBP/USD Retraces To 61.8% Fibonacci Level Of Wave-2

    Currency pair GBP/USD

    The GBP/USD is probably building an ABC (blue) zigzag as part of a wave 4 (purple). The support (green) and resistance (orange) trend lines are showing a contracting triangle chart pattern, which is critical for a potential breakout towards the larger support (dark green) or resistance (brown).

    The GBP/USD has completed 5 bullish waves (purple) either within a larger wave 1 (orange) or alternatively a wave A. The pullback could be part of a wave 2 (orange) and price has already bounced at the 61.8% Fibonacci support level. A break below the 100% Fib level of wave 2 vs 1 invalidates the wave 2 (orange).

    Currency pair EUR/USD

    The EUR/USD seems to be in a bearish breakout and is developing a downtrend (red line). Price could be moving lower within a wave 3 (purple).

    The EUR/USD needs to break below the support (green) trend line before a continuation of the wave 3 (purple) becomes possible. A move higher could face heavy resistance levels (orange/dark red/red).

    Currency pair USD/JPY

    The USD/JPY is breaking above the resistance trend line (dotted red) after making a bullish bounce at the wave 4 (purple). This bullish breakout could be part of a wave 3 (blue) within wave 5 (purple).

    The USD/JPY indeed started and completed a wave 4 (brown) correction at the 50% Fibonacci retracement level. Price is now trend higher within a bullish trend channel (red/green lines). A break below the support trend lines (green) makes a continuation of wave 5 (brown) unlikely. A break above the 61.8% Fib target could see further extensions towards the next Fib targets.

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    Elite CurrenSea Accessible Forex Trading Systems & Education With over 30 years of combined trading experience, we design, test, and provide successful Forex, CFDs & Crypto trading systems and solutions for retail and institutional traders alike.

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