GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, GBPUSD is starting a correction to the downside after the divergence. After reaching 23.6% fibo, the first descending impulse tried to reach 38.2% fibo at 1.2276 but started an internal pullback to the upside instead. Possibly, the market may resume falling towards 50.0% and 61.8% fibo at 1.2111 and 1.1946 respectively. The resistance is the high at 1.2813. If the price breaks this level, the instrument may resume the long-term uptrend.
The H1 chart shows a short-term rising pullback after the descending wave, which has already reached 50.0% fibo and may yet continue towards 61.8% fibo at 1.2553. After finishing the pullback, the pair resume trading downwards to break the low at 1.2335 and then continue towards the mid-term 38.2% fibo at 1.2276.
EURJPY, “Euro vs. Japanese Yen”
As we can see in the H4 chart, EURJPY is correcting to the downside; it has already reached 50.0% fibo and may continue falling towards 61.8% fibo at 118.79. at the moment, the pair is forming a short-term rising structure within the correction. After finishing the pullback, the instrument may start a new rising wave towards the mid-term 50.0% fibo at 125.94 but only after breaking the high at 124.43.
The H1 chart shows a more detailed structure of the correctional uptrend after the descending wave and the convergence. After reaching 38.2% fibo at 121.25, the first ascending impulse has failed to test it. Possibly, the pair may yet test this level and break it to continue growing towards 50.0% fibo at 121.86. However, if the price breaks the low at 119.31, it may resume the descending tendency.
