Fibonacci Retracements Analysis 04.03.2020 (GBPUSD, EURJPY)
GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, after breaking 50.0% fibo, the descending tendency has stopped at 61.8% fibo (1.2700). The convergence on MACD indicates a possible reversal, but in order to confirm it, the pair has to break the resistance at 1.3009. In case the price continues falling, the instrument may reach the closest target at 61.8% fibo (1.2700) and then 76.0% fibo at 1.2512.
In the H1 chart, the convergence made the pair start a new rising pullback after the downtrend, which may reach 23.6%, 38.2%, and 50.0% fibo at 1.2912, 1.3026, and 1.3120 respectively. If the price breaks the support (the low at 1.2725), the mid-term descending tendency will continue.
EURJPY, “Euro vs. Japanese Yen”
As we can see in the H4 chart, after the pair had corrected to the upside by 61.8%, there was a quick descending impulse that tested the local low at 118.46. If the price breaks the low and fixes below it, the downtrend may continue to reach 76.0% at 117.55 and then the low at 115.86. However, if the price rebounds, it may mean that the instrument can’t decide what to do and where to go next. If, after rebounding from the low, the pair breaks the previous fractal at 121.40, it may grow to break the high at 122.87 and then continue moving upwards to reach the post-correctional extension area between 138.2% and 161.8% fibo at 124.55 and 125.57 respectively.
In the H1 chart, the pair is stuck between 118.46 and 121.40, which are support and resistance respectively.