Fibonacci Retracements Analysis 07.07.2021 (GBPUSD, EURJPY)
GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, GBPUSD is trying to move upwards and form a new rising wave after convergence on MACD. If this movement really is a new wave but not a pullback, it may be heading towards the local high at 1.4250, a breakout of which may result in reaching the fractal at 1.4376. If later the price breaks the fractal as well, the instrument may continue growing towards the post-correctional extension area between 138.2% and 161.8% fibo at 1.4447 and 1.4570 respectively. However, if the above-mentioned rising movement doesn’t transform into a proper wave, the market may resume falling to reach 38.2% and 50.0% fibo at 1.3648 and 1.3463 respectively.
The H1 chart shows potential upside targets after convergence on MACD. After reaching 23.6% fibo, the pair is correcting to the downside and may later resume growing towards 38.2%, 50.0%, 61.8%, and 76.0% fibo at 1.3929, 1.3991, 1.4062, and 1.4126 respectively. The support is the low at 1.3731.
EURJPY, “Euro vs. Japanese Yen”
In the H4 chart, after re-testing 23.6% fibo, the pair has broken it and is currently trying to start a new descending wave within the mid-term correction towards 38.2% and 50.0% fibo at 129.35 and 127.88 respectively. At the same time, if the price fails to fix below 23.6% fibo, the instrument will complete the correction and resume growing to reach the high at 134.12.
As we can see in the H1 chart, the asset is trading within the downtrend after correcting and reaching 61.8% fibo. If the price tests the low at 130.04 and rebounds from it, the pair may resume growing towards 76.0% fibo at 133.14. However, the key upside target is the high at 134.12.
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