GBP USD, “Great Britain Pound vs US Dollar”
As we can see at the H4 chart, after breaking the high at 1.3657, the GBP/USD pair is still trading upwards and may grow towards the post-correctional extension area between the retracements of 138.2% and 161.8% at 1.3900 and 1.4050 respectively.
At the H1 chart, the divergence forced the pair to reverse downwards and start a new descending correction. The targets of this correction may be the retracements of 23.6%, 38.2%, 50.0%, and 61.8% at 1.3746, 1.3693, 1.3657, and 1.3604 respectively. After that, the uptrend is expected to continue.
EUR JPY, “Euro vs. Japanese Yen”
As we can see at the daily chart, the divergence is almost over, which means that the EUR/JPY pair may reverse downwards. The closest targets of this decline may be the retracement of 23.6%, 38.2%, and 50.0% at 131.50, 128.40, and 125.80 respectively. The resistance level is close to the current high at 136.63.
At the H4 chart, the pair may break the high at 136.63 and then continue growing towards the post-correctional extension area between the retracements of 138.2% and 161.8% at 138.00 and 138.85 respectively. However, if the price breaks 133.02, it may start a new long-term downtrend with the first target at 131.50.
RoboForex Analytical Department