The GBP/USD bullish bounce and breakout above the resistance trend lines (dotted red)is creating a continuation of the uptrend. Price is now close to testing the previous tops (red), which could soon complete a wave 5 (green) pattern.However, in the meantime, price could keep pushing for more higher high before running out of steam
The GBP/USD breakout might have completed a wave 3 (grey) pattern. The current pullback could be a bearish retracement within wave 4 (grey). The Fibonacci levels of wave 4 could act as potential support levels whereas a break above resistance (orange) could indicate that bullish continuation.
USD/JPY
The USD/JPY is struggling to break above the Fibonacci resistance zone.A break above these shallow 38.2-50% Fib levels makes such a wave 4 unlikely whereas a bearish break below support (blue) could indicate a continuation of the downtrend.
The USD/JPY is building a corrective pattern between support and resistance trend lines.
