The counter is in a long-term bear cycle, owing to Brexit.
It completed the wave 3 and consolidated in the form of a wedge, which is wave 4.
Now, we believe wave 5 has commenced since the wedge is broken and hence the pair can trade with profound bearish bias.
The descending triangle formed in the counter paints a bearish bias in the counter.
The price is currently at a support zone, however, we expect it to break paving way for a short trade.
Hence, traders can go short only after a bearish candle closes below the support zone.
The counter is brimming with positive bias for the past few days.
The price is at its trendline in the hourly chart.
Hence, it’s a good opportunity to go long since we expect it to continue its bullish momentum.
The counter is range bound, 0.71300-0.70669.
After taking resistance at the upper end of the resistance, the counter has crossed the mid level of the range, 0.70981.
Hence, we expect the pair to the lower end of the range, 0.70669.
An inverse head and shoulder pattern in the 4-hour chart signals a trend reversal in the counter.
However, the pair has not crossed its neckline as of yet.
Hence, we advise traders to go long on the pair only after the breakout of neckline.
The dragon pattern, a variation of double bottom pattern, is formed in the counter.
The price has crossed the critical resistance level of 1.12047 as well.
Hence we expect the pair to move to the next resistance levels of 1.12561 and 1.12939.
The double top pattern in the 30-min chart indicates the end of bull trend in the short term charts.
The pair has also broke the critical support level of 0.67762.
Hence we expect the pair to trade with bearish bias in the near-term.
The zone of 111.947-112.126 provides a hard resistance to the pair.
Also, the pair has formed an ascending triangle pattern, which means that there is one leg of down move due in the counter.
Hence we expect the pair to move to the supportive trendline for now.
GBP/JPY is currently trading in its 10-day high after forming a double bottom pattern.
It surpassed the critical resistance of 146.496 as well with a strong bullish candle and is consolidating for now.
Hence we expect the pair to continue its momentum and rally to the resistance at 148.411.
The pair is sizing up for long-term bearish move and is now constructing only first two waves of an Elliott wave.
Second wave being an corrective wave has a three wave structure - ABC.
The breaking of the trendline indicates the commencement of wave C.
Hence, traders can take advantage of the near-term bullish bias and initiate long positions.
A head and shoulder pattern after a significant bullish move signals the completion of the rally.
The price is hovering around its neckline for now.
We expect it to render a bearish breakout and move to support of 60.85 owing to a profit booking rally.
The double top pattern formed in the 15-min chart indicates a trend reversal in the near term.
Also, the pair crossed the critical price action support of 0.67827.
Hence we expect the pair to move to the next support level at 0.67715.
An inverse head and shoulder has formed in the 15-min charts.
Also, a significant price action level of 1.83600 has been cleared convincingly.
Hence, we expect the pair to trade with bullish bias in the near-term.
The Index has broken the trendline which paved the bull rally for the past 10 days.
It is consolidating below the trendline and there is a slight chance for a pull back rally to test the broken trendline.
However, the break could trigger a profit booking rally and the index is set for a bearish move for now.
The falling wedge pattern which held the EUR/USD in the downtrend has been broken.
Also, the preceding bearish move was characterized with minimal corrective rallies.
Hence, this breakout will render a trend reversal, if at all a corrective rally, and move to the resistance at 1.3236.