Fibonacci Retracements Analysis 08.07.2020 (GBPUSD, EURJPY)

GBPUSD, “Great Britain Pound vs US Dollar”

The daily chart shows a new ascending wave after the correction towards 38.2% fibo. If GBPUSD is able to break the key high at 1.2813, the price may continue growing towards 50.0% and 61.8% fibo at 1.2895 and 1.3242 respectively. However, if the pair reverses after testing the high, the asset may continue the long-term correction with the targets at 50.0% and 61.8% fibo at 1.2111 and 1.1946 respectively.

The H1 chart shows a more detailed structure of the uptrend after the convergence. By now, the pair has already reached 50.0% fibo. Later, it may continue growing towards 61.8% and 76.0% fibo at 1.2598 and 1.2678 respectively. If the price breaks the support at 1.2252, the instrument may continue the mid-term downtrend.

EURJPY, “Euro vs. Japanese Yen”

As we can see in the H4 chart, EURJPY is growing towards 50.0% fibo. There is a strong possibility that later the pair may form a new descending impulse, which may be heading towards the low at 119.31. After breaking it, the instrument may continue trading downwards to reach 61.8% and 76.0% fibo at 118.79 and 117.50 respectively. The key resistance is the high at 124.43.

The H1 chart shows a more detailed structure of the correctional uptrend and divergence on MACD, which may indicate the completion of the pullback and a further decline towards the low at 119.31. However, one shouldn’t exclude another scenario, according to which the asset may start a new rising impulse. In this case, the upside targets may be at 61.8% and 76.0% fibo (122.47 and 123.19 respectively).