Major FX Pairs EUR/USD and GBP/USD Approaching Support: Elliott Wave Analysis

EURUSD 4h Elliott Wave Analysis

EURUSD is coming sharply down due to the situation in Ukraine, and it seems that the pair is in an impulsive sell-off with room for more weakness after rallies. We see pair in wave 3 now so an upcoming bounce into wave 4 can stop at the broken channel line that can turn into resistance near 1.10950-1.1.

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GBPUSD 4h Elliott Wave Analysis

The cable is coming sharply down, clearly with an impulsive sell-off from 1.3642 highs so we should be aware of the potential limited weakness, even if just short-term. Keep in mind that every five waves need a minimum three-wave retracement which would not be a surprise after recent sharp and extended leg down, into oversold conditions. RSI divergence on 4h may also suggest a low down. However, any bullish price action may not show up until 1.3485 is broken, which is far away at this stage.

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