The EUR/USD failed to break resistance and is now building bearish price action within a final leg of the bullish wave 4 correction. Rather than breaking resistance, price in fact broke below the support trend line (dotted green) and it isexpanding the bearish correction via a WXY (blue) pattern. The wave 4 (pink) is therefore most likely still open but price could close to completing that wave structure at the support zone (green lines).
The EUR/USD broke multiple support lines and is building a bearish channel. Currently price could be in a bearish wave 4 (brown), as long as price stays below the 61.8% Fib and previous bottom (red line). There could be still one or even two more lower lows if price expands the 3rd wave (orange).
The GBP/USD bearish momentum could indicate the end of the bullish trend and the start of a new bearish reversal (wave 1-2) or ABC correction. The 1.40 round level is a potential support area which could create a bullish bounce as part of a wave 2 or B.
The GBP/USD is probably moving lowerin a bearish wave 5 (brown). A bearish break below 1.40 could indicate an immediate bearish continuation for one more lower but eventually a bullish retracement is likely.
