The EUR/USD broke above the choppy bearish channel is choppy after bouncing at a key support zone between 1.2150 and 1.22. This bearish retracement could complete a potential wave 2 (purple) or be part of a larger bearish ABC correction. A new trend is not yet visible and price will need to break above the support (green) or resistance (red) levels before a larger directional move can be expected.
The EUR/USD is building potential 5 bullish waves which could either complete a wave A (red) or wave 1 (green). Wave A would complete a larger ABC within the wave B (brown) and a wave 1 indicates the potential for a larger uptrend.
The GBP/USD did indeed turn back upwards after hitting the 61.8% Fib last week. A break below the green support line still makes the current wave 4 pattern unlikely whereas a bullish breakout above the resistance (red) line could spark a bullish continuation.
The GBP/USD is building a key consolidation pattern at the resistance trend line (red). A bullish breakout could be part of a bullish wave 3 (grey) within wave 5 (green).
Good trading,
Chris Svorcik
Elite CurrenSea
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