the EUR/USD reached a major target at 1.1750 and could be building a bullish wave 4 retracement. The GBP/USD downtrend is in a grey area and could either build a bigger bullish retrace or continue with the bearish trend depending on the breakout.
The EUR/USD bearish bounce at 1.20 and then broke neatly below 1.19 support zone for a downtrend continuation towards 1.1750. This could have completed the 5th wave wihtin a larger wave 3 and hence a retracement back to 1.19-1.20 resistance is possible within wave 4. A break below the bottom could indicate a larger bullish correction.
The GBP/USD consolidation zone is becoming expanded and both a bullish and breakout are possible. A bullish break could indicate a larger bullish within wave 2 whereas a bearish continuation could aim for 1.3350-1.34.
Check out the video for the full analysis and trade plans on 17-19 May 2018:
- EUR/USD, GBP/USD technical analysis
- Review of patterns, trends, key S&R levels
- Explanation of potential trade ideas both up and down
- Beginner friendly, explaining concepts in more detail
See the video below for all of the details