Gbpusd has taken out the R5 resistance at 1.5862 and now is moving back inside the rising wedge. This wedge pattern is bearish for the cross and since it is a squaring day look for that movement to have some legs. A break of the wedge to the downside targets the 1.5705 ( .618 fib retracement) level. It could of course bounce in the .382 and head back up. A break of the R5 again should stop at the 1.5900 psychological number.
Looking to break out of the flag to the downside. Currently bouncing off the bottom and sitting at 9864. Look for sellers to come in at .9877 ( S2). Initial target is the the .382 fib retracement @ .9806 then the .500 fib $ .9756 . Aussie could make the S4 at .9733 today. A break above the 9877 targets a double top @ .9969.
A little more to go in this move and we will be at the top of the trendline. Currently the cross has broken through the .500 fib retracement @ 1.5785 and showing little signs of a pullback here. The .618 fib is also at the trendline @ 1.5856 so expect some pullback there. A break of the former trendline to the upside targets the .786 fib retracement @ 1.5957. A reversal here targets a move back to the 382 fib @ 1.5714.
A little more to go in this move to the .270 and the 2.618 fib extensions. Currently the cross has broken through resistance @ 0.9941 and showing little signs of a pullback here. The break of the former top indicates yet another move towards 1.0000 which is within 50 pips. May see some consolidation at that number before moving to the target.
A little more to go in this correction to complete an ABC. Currently sitting on the 0.382 fib retracement but looking for a move to the .500 fib retracement (1.3201) in the short term. Major consolidation in that area should hold it for a bounce back to the top @ 1.3423 and then a continuation to the 270 fib extension @ a.3543.
Non Farm payroll numbers finally out – BUT can we trust the number? Looking for the continuation of the reaction up to the 1.3387-1.3400 area. Should see profit taking and sellers showing up there. Any continuation after that should go to the 1.3376-1.3388 area. Downside risk is back to the 1.3250 area.
We are trying to correct the last downtrend which completed 5 waves. The cross has taken out the R4 target at 1.3215 so resumption of the down move could happen anytime. We have also taken out the .500 Fib retracement at 1.3181. Look for sellers at the 618 retracement area at 1.3230-50 area if it gets that high. Possibly building a head and shoulders pattern now as the uptrend is bending and the left shoulder and head are already in place ( we’ll see) A break of the Neck line down targets the 1.3100 area again.