GBPUSD
30 min
4 Hours
Daily
My Bias: short below parity in wave (5).
Wave Structure: continuing impulsive structure to the downside in wave (5)
Long term wave count: decline in wave (5) blue, below parity
After calling the top in a possible wave (ii) brown Wednesday night at 1.3319. The price tumbled 250 points on Thursday!
The idea of a running flat wave (ii) seems to be confirmed now. And today’s sharp decline is the beginning of wave ‘iii’ of (iii).
1.3319 now becomes key resistance on the short term chart.
The price seems to have traced out a five wave pattern into today’s lows, I have labeled this wave ‘i’ down. A break of support at 1.3025 will add significant weight to the short-term wave count.
For next week, watch for a three wave recovery in a possible wave ‘ii’ pink. That should complete another bearish elliott wave signal in cable, the outlook remains solidly negative for now.
USDJPY
30 min
4 Hours
Daily
My Bias: LONG
Wave Structure: rally in wave [C]
Long-term wave count: wave [C] is underway, upside to above 136.00
As expected, USDJPY corrected in a wave ‘2’ pink today. The decline was very choppy and made zero net gain so it qualifies as a corrective form.
The price has again bounced higher this evening in a possible wave ‘3’ pink. The Fibonacci projection for wave ‘3’ lies at 115.70. With support at 113.52, a break of the wave ‘1’ high will confirm the beginning of wave ‘3’.
For tomorrow: 113.52 should hold from here on. 114.27 is the price to watch to confirm wave ‘3’ has begun. The price could rally quickly from here as it is a possible wave ‘3’ of ‘iii’ of (iii).
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