GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, the divergence made GBPUSD reverse and start a new descending movement, which has already reached the retracement of 61.8%. The next downside targets may be the retracements of 76.0% at 1.3872 and the level of 1.3712. The resistance level is at 1.4124.
In the H1 chart, the pair is falling towards 1.3872 and has already been corrected by 23.6%. After the convergence, the instrument may reverse and start a new correction towards the current resistance area.
EURJPY, “Euro vs. Japanese Yen”
As we can see in the H4 chart, EURJPY has already reached the retracement of 50.0%. The next upside target may be the retracement of 61.8% at 134.24. At the same time, one can see the divergence being formed. The support level is at 132.21.
In the H1 chart, the short-term divergence that is being formed may indicate a possible pullback to the downside to reach the retracements of 23.6%, 38.2%, and 50.0% at 132.42, 131.75, and 131.22 respectively.
RoboForex Analytical Department