The EUR/USD could have completed only 1 part of the wave X (brown) correction which means that price might face resistance at the Fib levels of wave X (magenta).
The alternative wave count would be a bearish 5 wave (12345) which replaces the WXY (magenta). From a practical point of view the counts both imply potential resistance if the EUR/USD indeed makes a bullish bounce.
The GBP/USD has shown strong bullish momentum as the Awesome Osc went firmly above the midpoint of the indicator. Also last week’s candle was heavily bullish and had a close near the high.
The GBP/USD had intra-day bearish momentum during the first 2 days of trading. The 50 and the 61.8% Fibonacci levels are the very last expected bouncing spots for a wave 4 (magenta) otherwise the wave count might need to be changed.
The wave X (purple) wave count will become invalidated if USD/JPY breaks above the 100% Fibonacci level (X vw W).
If the USD/JPY does bounce at resistance (red line and Fib) then it could fall back towards support (green).
Please note that the update is posted with permission from Admiral Markets
read the original article on AdmiralMarkets.com