Currency pair EUR/USD
The EUR/USD has reached yesterday’s first target at 1.1925. A continuation towards 1.20 is possible if price stays above the support trend lines (green/blue).
The EUR/USD completed an ending diagonal within the 5th wave (purple). The current bearish retracement could be part of a wave 4 (grey) if price manages to stay above the 50% Fibonacci level which is the invalidation spot for this wave structure.
Currency pair USD/JPY
The USD/JPY failed to break the bottom and round level at 110, which was expected in yesterday’s analysis due to the potential unfolding of an ABC zigzag pattern within wave B (brown). A bullish breakout above resistance (red) could signal the start of wave C (orange).
The USD/JPY potential breakout above resistance (red) could see a continuation towards the Fibonacci targets of wave 3 (purple) vs 1.
Currency pair GBP/USD
The GBP/USD did not manage as yet to break above the 1.3250 quarter level and is now building a correction. Whether the wave 3 (blue) will indeed be confirmed depends on how far the GBP/USD will move. A failure to break above the 100% Fibonacci target could indicate an ABC rather than a 123.
The GBP/USD could be building an extension of the wave 3 (green) with 5 internal waves (orange/purple). A pullback could be part of the wave 4 (purple) which means that the Fibonacci levels of wave 4 vs 3 could act as support.
