Fibonacci Retracements Analysis 20.01.2021 (GBPUSD, EURJPY)
GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, after finishing a slight correction, GBPUSD is forming another rising impulse to reach the high at 1.3740. If this level is broken, the price may continue growing to reach the post-correctional extension area between 138.2% and 161.8% fibo at 1.3790 and 1.3980 respectively. However, an alternative scenario says that the pair may rebound from the high and start a new mid-term descending wave towards 23.6%, 38.2%, 50.0%, 61.8%, and 76.0% fibo at 1.3465, 1.3315, 1.3193, 1.3071, and 1.2924 respectively.
In the H1 chart, the descending correctional wave was approaching 38.2% fibo at 1.3510 but has failed to reach it. In the nearest future, the price may break the high at 1.3710 and then continue growing towards the post-correctional extension area between 138.2% and 161.8% fibo at 1.3782 and 1.3828 respectively.
EURJPY, “Euro vs. Japanese Yen”
In the H4 chart, EURJPY is completing its decline after another divergence on MACD and may start a new rising wave soon. Possibly, the pair may resume growing to break the mid-term 61.8% fibo at 128.65 and then continue moving to reach the post-correctional extension area between 138.2% and 161.8% fibo at 129.16 and 130.43 respectively. The key support is the fractal low at 121.62.
As we can see In the H1 chart, after correcting towards 50.0% fibo, the pair is moving upwards but may soon start another descending impulse to reach 61.8% fibo at 124.62. The local upside target is the high at 127.49, a breakout of which will hint at a further uptrend.