Fibonacci Retracements Analysis 21.10.2020 (GBPUSD, EURJPY)

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GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, the previous rising wave has transformed into a new sideways correction between 23.6% and 50.0% fibo. Possibly, GBPUSD may yet resume growing towards 61.8% fibo at 1.3174 and then 76.0% fibo at 1.3288. Such a movement will signal further growth to reach the high at 1.3482. However, there is another scenario that implies further decline to break the low at 1.2675 but it’s very unlikely.

In the H1 chart, a local divergence on MACD made the pair fall and attempt to test 50.0% fibo several times. However, after each test, the asset has failed to update both local highs and the key high at 1.3083, thus hinting at further decline towards 61.8% fibo at 1.2831. If the instrument breaks the resistance at 1.3083, the correction will be over.

EURJPY, “Euro vs. Japanese Yen”

As we can see in the H4 chart, after finishing the descending wave, the asset is forming a new rising impulse, which may later transform into a proper wave to break the high at 127.07 and then continue towards the long-term 61.8% fibo at 128.65. However, to confirm this scenario, the market must break 61.8% and 76.0% fibo at 125.29 and 125.94 respectively. If it fails, EURJPY may form another mid-term descending wave to break the low at 122.38 and then continue falling to reach 61.8% and 76.0% fibo at 122.28 and 121.18 respectively.

In the H1 chart, the pair has reached the local high at 125.08. After breaking it, the instrument may continue growing towards 61.8% and 76.0% fibo at 125.29 and 125.94 respectively. The local support is the low at 123.02.

Article By RoboForex.com

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