Fibonacci Retracements Analysis 07.10.2020 (GBPUSD, EURJPY)

October 7, 2020

Article By RoboForex.com

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, after a rebound from 38.2% fibo and a local convergence on MACD, GBPUSD is finishing a correction to the upside at 23.6% fibo. If the price forms a new rising impulse and fixes above the latter level, it may be a signal in favor of a new mid-term rising wave to reach the high at 1.3482. However, the most probable scenario implies further decline to reach 50.0% and 61.8% fibo at 1.2446 and 1.2200 respectively.

GBPUSD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H1 chart shows a more detailed structure of the current decline after the divergence on MACD, which has already reached 38.2% fibo. If the pair breaks the high at 1.3007, the price may continue growing towards the mid-term 50.0% fibo at 1.3079. However, considering that the first descending impulse was pretty strong, the market may continue falling to reach 50.0%, 61.8%, and 76.0% fibo at 1.2841, 1.2802, and 1.2755 respectively. The key downside target is the support – the low at 1.2675.


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GBPUSD_H1
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

EURJPY, “Euro vs. Japanese Yen”

As we can see in the H4 chart, after a rebound from 38.2% fibo and convergence on MACD, EURJPY is correcting upwards and has returned to 23.6% fibo but failed to fix above it. Possibly, the pair may yet update its local highs but the most probable scenario implies a new descending wave with the targets at 38.2%, 50.0%, and 61.8% fibo at 122.22, 120.75, and 119.25 respectively.

EURJPY_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart, the instrument is moving downwards after a divergence on MACD. Despite reaching 38.2% fibo, the asset has chances to reach the high at 124.73, break it, and then continue growing towards mid-term 61.8% and 76.0% fibo at 124.90 and 125.48 respectively. However, taking into account the divergence, the instrument may yet resume falling to reach 50.0%, 61.8%, and 76.0% fibo at 123.55, 123.27, and 122.94 respectively. The key downside target is the low at 122.38.

EURJPY_H1

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.