Fibonacci Retracements Analysis 10.10.2018 (GBPUSD, EURJPY)

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, after completing the correction, GBPUSD started a new rising impulse, which is getting closer to the retracement of 76.0% at 1.3207. The main upside target is the current high at 1.3298. If the price breaks the high, the pair may continue trading towards the post-correctional extension area between the retracements of 138.2% and 161.8% at 1.3440 and 1.3532 respectively. The support level is at 1.2922.

In the H1 chart, the pair is trading upwards, but once can see the divergence being formed, which may indicate a possible pullback after the price reaches the short-term target, the retracement of 76.0% at 1.3207. The targets of this pullback may be the retracements of 23.6%, 38.2%, and 50.0% at 1.3140, 1.3098, and 1.3064 respectively.

EURJPY, “Euro vs. Japanese Yen”

As we can see in the H4 chart, the divergence made EURJPY start a new correctional downtrend, which has already reached the retracement of 38.2%. The next possible targets are the retracements of 50.0%, 61.8%, and 76.0% at 129.02, 128.06, and 126.88 respectively. The resistance level is the high at 133.13.

In the H1 chart, the pair is forming a short-term ascending correction inside the main downtrend. If the price breaks the low at 129.34, the instrument may continue trading downwards.