Finally, USDCHF has turned sharply to the downside in the last few days, clearly in impulsive price action that can cause even more weakness in the next few days. We are looking to lower levels in wave C of a black wave 4 that can even look for 0.9780 once again where we would expect to see a bottom formation of a big corrective wave four that is unfolding since November 2015.
GBPUSD fell strongly in January after the price took out 1.4560 level from where we have seen a decline into our Fibonacci support levels near 1.400. Notice that fall was extended, so it must be impulsive as part of a much bigger bearish cycle. However, market never moves in straight lines so we need to be aware of a corrective price actions. Well, we have seen a nice bounce in the last two weeks to 1.4700 that we see it as wave four within ongoing bearish trend. That said, traders must be aware of a new turn down in days ahead, for wave 5 of III.
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