Fibonacci Retracements Analysis 22.07.2020 (GBPUSD, EURJPY)

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, after finishing a short-term correction, GBPUSD is forming a new ascending wave. By now, the pair has already broken 76.0% fibo and is heading towards the high at 1.2813. If the price breaks it, the instrument may continue growing to reach the long-term 50.0% fibo at 1.2895 and then the post-correctional extension area between 138.2% and 161.8% fibo at 1.3026 and 1.3158 respectively. The key support is the fractal low at 1.2252.

The H1 chart shows a slight pullback after a strong rising impulse. This short-term pullback may reach previously-broken 76.0% fibo at 1.2678. However, the key upside target remains at the high at 1.2813.

EURJPY, “Euro vs. Japanese Yen”

As we can see in the H4 chart, EURJPY is slowly rising and has already reached 76.0% fibo. The closest upside target is the high at 124.43. After breaking it, the market may continue growing towards the long-term 50.0% fibo at 125.94 and then the post-correctional extension area between 138.2% and 161.8% fibo at 126.38 and 127.57 respectively. The main scenario doesn’t imply a rebound from the high. The support is the low at 119.31.

In the H1 chart, the instrument is trading upwards and has already reached 76.0% fibo. The uptrend is looking quite stable but there is a divergence on MACD, which may indicate a pullback towards 61.8% and 50.0% fibo at 122.47 and 121.87 respectively.