The EUR/USD is completing 5 bearish waves within wave A, which is part of a larger ABC zigzag pattern that is aiming for 1.1475-1.15 support zone. The GBP/USD is building a wave 4-5 pattern too, but the GU could finish a wave 1 and retrace for a wave 2 before building an impulsive wave 3. Check out our education & research page at ECS.
EUR/USD could build multiple head and shoulders reversal chart patterns around 1.15-1.17. Ultimately the path of least resistance favours an ABC down, which is part of a wave B and a larger ABC up. Once the bearish ABC is completed, a larger uptrend is expected to start.
GBP/USD seems to have started a long-term downtrend. Price is probably in a wave 1 and could retrace soon for a wave 2. Keep in mind though that the bearish momentum could push price lower for a new low first.
Check out the video for the full analysis and trade plans on 30 Sep – 1 Oct 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