GBPUSD found the support last week and recovered nicely above the upper trend line of a downward channel. A reversal from the low can be counted in five waves on the intraday charts, so we suspect that trend has changed and that pound will continue to the upside, especially after a corrective retracement back to 1.6550/70 that could unfold in the next few sessions.
Today I will take a look on USDJPY which is consolidating for few weeks now. It looks like pair is waiting on continuation lower on Nikkei futures where we see a bearish pattern. A break to the downside will mostly send USDJPY lower as well. Check out our video for more details.
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GBPUSD turned down yesterday, through the lower side of an upward channel that suggest now a completed wave B. As such price is now heading down in wave C final leg of corrective pattern that may look for a support around 1.6550 later this week. Keep in mind that larger trend is still up, and that retracement from 1.6822 is just temporary.
On the intraday chart of cable we see slow price action above 1.6620 level after some strong sell-off yesterday through 1.6700 zone. That move yesterday was most likely wave (iii) of an impulsive decline in progress, so we suspect that current pause represents wave (iv) so we can assume that GBPUSD has room for more weakness within current wave C.
USDCHF is recovering in five waves from the lows, so looks like price is at the start of a bigger minimum three waves rally. From a trading perspective, a three wave retracement back to 0.8830/50 area could be nice set-up for long opportunity. For more details make sure to check our video below.