GBPUSD, “Great Britain Pound vs US Dollar”
The H4 chart shows the downtrend; the correction has already reached the retracement of 61.8% and may continue towards the retracement of 76.0% at 1.2908. The key support level is at 1.2785. If the price breaks the resistance level at 1.3295, GBPUSD may start a new mid-term uptrend. In this case, the possible targets will be the retracements of 38.2% and 50.0% at 1.3316 and 1.3518 respectively.
In the H1 chart, the convergence made the pair reverse and start a new correctional uptrend, which has already reached the retracement of 23.6%. The next upside targets may be the retracements of 38.2%, 50.0%, 61.8%, and 76.0% at 1.3047, 1.3978, 1.3112, and 1.3151 respectively. The support level is the low at 1.2941.
EURJPY, “Euro vs. Japanese Yen”
As we can see in the H4 chart, the divergence made EURJPY start a new correctional downtrend, which has already reached the retracement of 23.6%. The next possible targets are the retracements of 38.2%, 50.0%, and 61.8% at 129.99, 129.01, and 128.04 respectively. However, in case the pair breaks the high at 133.13, the instrument may start a new impulse to the upside.
In the H1 chart, the convergence made the pair reverse and start a new rising impulse, which has already reached the retracement of 50.0%. In case the uptrend continues and breaks the high at 133.13, the instrument may grow to reach the post-correctional extension area between the retracements of 138.2% and 161.8% at 134.05 and 134.62 respectively. The support level is at 130.71.
