The EUR/USD broke below the chart pattern after making a pullback and bearish bounce at the Fibonacci resistance levels. Price has reached the 5th wizz level which is a bounce or break decision zone. The bears however remain in control. This is also valid for the GBP/USD, which is in a bearish wave 3 as well. The GBP/USD however seems to have more immediate space to the downside because it broke wizz level 5.
EUR/USD bullish bounce is expected to be limited as price could face strong resistance at the Fibonacci retracement levels of wave 4. A bearish bounce could indicate a continuation towards the Fib targets at 1.1180-1.1250. A bearish breakout could indicate a deeper bearish wave 3 but eventually price is expected to make a wave 4 correction.
GBP/USD seems to still be in a bearish wave 3 as price broke below the 5th wizz level. A bullish retracement however is probably also just a wave 4 retracement as long as price stays below the 50% Fibonacci retracement level. A bearish breakout is aiming for the 6th wizz level at 1.2560.
Check out the video for the full analysis and trade plans on 15-17 August 2018:
Good trading,
Chris Svorcik
Elite CurrenSea
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