|GBPUSD Took a Big Hit & Made a Deep Dive from 1.50 to 1.32
GBP Further Weakness Seen in Wake of Brexit Vote
GBPUSD: The GBPUSD took a big hit and made a deep dive from 1.50 to 1.32 when the Brexit results were released Friday. The 1st target of the Wave C (Green) has been hit and reached, but further Bearish pressure could mean an extension to the next Fib 127.2% target at 1.25.
The GBPUSD looks to building a 5 wave structure (Blue) within the Wave 5 of the 4 hour. Wave 4 (blue) respected the 50% Fibo mark. A push above the 78.6% Fibo mark invalidates the Wave 4. A break below the support trend line (Green) could start the Wave 5 (Blue). A larger Wave 4 consolidation where price goes sideways is possible.
Support marks: 1.3560 1.3500 1.3450
EURUSD: The EURUSD broke the support trend lines (dotted) upon the British citizens voting for Brexit last week. Price fell from 1.14 to 1.09 before retracing back to the 50% Fibo mark. The most likely Wave count would suggest a Wave 1-2 (Green) within a Wave 5 (Purple) breakout. The Wave 5 becomes invalidated if price were to break above the 100% Fibo mark.
The EURUSD seems to be building a Bullish zigzag (Brown) correction within Wave 2 (Green). A break of the support trend line (Green) could mark the completion of that Wave 2.
Support marks: 1.1080 1.1040 1.1000
USDJPY: The USDJPY has moved down towards and bounced at the 50% Fibo mark. Price could bounce at this Fibo or fall towards the 61.8% mark.
The USDJPY is building a Bullish zigzag (Pink) within wave B (Green).
Support marks: 101.90 101.40 100.80
Have a terrific week.
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