Elliott Wave Analysis For GBPUSD And USDJPY


Written by www.ew-forecast.com |

GBPUSD fell to a new low on Friday after we recognized a corrective retracement in wave 4-circled. That new low was wave five, final leg in wave iii, so pull-back that is unfolding now is probably wave iv that will look for resistance around 1.6070/90 area.

GBPUSD Elliott Wave Analysis 1h
GBPUSD Elliott Wave Analysis 1h

With some bullish view on USD Index as described below, we are still keeping a close eye on USDJPY that could be in final stages of a larger contra-trend movement. We see a wedge shape formation that has taken place in the last few days that could be an ending diagonal. This pattern occurs at the end of a larger trend, and usually predicts a strong reversal in trend. It’s also important to know that each leg of an ending diagonal is made by three waves. For now we have a textbook example of this structure. If our bias is correct then pair is now in wave (v), final leg of an ending diagonal that could find a support around 96.60/96.80. Pair on the radar screen!

USDJPY Elliott Wave Analysis 1h
USDJPY Elliott Wave Analysis 1h

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Gregor Horvat first made his name in Slovenia and has become world famous in the forex market since 2003. He is both a trader and a technical analyst who offers trading strategies on the Fibonacci and Elliot Wave principle. His main focus is on currency pairs, U.S. stock market, gold and oil. Gregor Horvat found the forex service offered on http://www.ew-forecast.com/. This website provides traders technical analysis, while putting emphasis on behavioral patterns. These are derived from the Elliott Wave Principle (EWP). Traders who are interested in the entry and exit positions, and he probability of the former and latter follow the EWP on a regular basis.