Fibonacci Retracements Analysis 04.08.2017 (GBP/USD, EUR/JPY)

GBP USD, “Great Britain Pound vs US Dollar”

At the H4 chart, after reaching its upside target areas, the GBP/USD pair started forming a pre-reversal or pre-correctional divergence. Right now, we can see that the uptrend that took place last month has been corrected by 23.6%. The next targets of this correction, in case it continues, are the retracements of 38.2% and 50% at 1.3011 and 1.2931 respectively. At the same time, the price may yet continue moving upwards. If the instrument breaks the local high, it may continue growing towards the retracement of 261.8% at 1.3400.

At the H1 chart, the situation is pretty similar, but in the short-term the descending correction may yet continue. The closest target of this correction is the retracement of 61.8% at 1.3061.

EUR JPY “Euro vs Japanese Yen”

As we can see at H4 chart, the EUR/JPY pair broke the high at 130.76 and continued moving inside the uptrend. The target of the current movement is between the retracements of 138.2% and 161.8% at 131.60 and 132.20 respectively. But even more ambitious upside target may be the retracement of 261.8% at 134.40. The support area for the current uptrend is 128.46.

As we can see at the H1 chart, the pair is being corrected towards the retracement of 38.2% at 130.30. After completing the correction, the price may resume moving upwards and form another ascending impulse.

RoboForex Analytical Department