GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, after being corrected to the upside by 23.6%, GBPUSD has started a new descending impulse. The closest downside target is at 1.2661. However, the uptrend may yet continue. If the price starts forming a new impulse to the upside, the targets may be the retracements of 23.6% and 38.2% at 1.3067 and 1.3316 respectively.
In the H1 chart, the divergence made the pair start a new downtrend, which is getting closer to the retracement of 61.8% at 1.2807. The next downside target may be the retracement of 76.0% at 1.2753. However, at the moment the price is slowing down and the convergence is being formed, which may indicate a new pullback – it has already reached the retracement of 23.6% and may continue towards the retracements of .38.2% and 50.0% at 1.2898 and 1.2926 respectively.
EURJPY, “Euro vs. Japanese Yen”
As we can see in the H4 chart, the divergence made EURJPY reverse and form a new descending impulse, which has already reached the retracement of 38.2%. The next downside targets may be retracements of 50.0%, 61.8%, and 76.0% at 127.87, 127.17, and 126.32 respectively. The resistance level is the high at 130.86.
In the H1 chart, the convergence made the pair reverse and start a new correction, which has already reached the retracement of 38.2%. The next targets of this movement may be the retracements of 50.0% and 61.8% at 129.59 and 129.89 respectively. If the price breaks the short-term low at 127.317, the downtrend will continue.
