A deep retracement on GBPUSD to 1.6340 in the last 48 hours appears to be only one leg of minimum three wave set back. We reworked the wave count and now tracking an incomplete wave (iv) pullback that is expected to find a support with subwave c) somewhere around 1.6290/1.6310; at former wave iv). With that said, short term bias on GBPUSD suggests sideways or even bearish price action.

GBPUSD 1h

USDJPY made very deep retracement in the last two trading days which we firstly thought it will be wave (ii) and that wave 4 already found a base at 101.60. However, pair is actually moving sideways since start of December so we are now observing idea of an incomplete triangle. With that said, be aware of more sideways price action before going higher. Stocks are also weak, not helping USDJPY much.

USDJPY 1h

Written by www.ew-forecast.com