GBPUSD Took a Big Hit & Made a Deep Dive from 1.50 to 1.32

GBPUSD Took a Big Hit & Made a Deep Dive from 1.50 to 1.32
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
Resistance marks: 1.3670 1.3730 1.3780

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
Resistance marks: 1.1120 1.1160 1.1200


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
Resistance marks: 102.45 102.90 103.30

Have a terrific week.


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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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