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The USD is mixed across the board, but up strongly now against the GBP following the UK BoE minutes. On Cable we are still tracking a fourth wave as the correction became more complex after yesterday’s rally from around 1.5050. Based on the latest price action and the current sell-off from 1.5200 we suspect that the pair is making a triangle in wave 4) and that sooner or later the price will break out of range, falling beneath 1.5000.

GBPUSD 1h Elliott Wave Analysis

GBPUSD Elliott Wave Analysis January 21 2015 technical chart for currency trading

EURUSD is showing slightly different picture on the short-term charts, where the price can rally to a new swing high, to above.1.1637 as a recent small downward retracement unfolded in three waves. However, even a move up to a new swing high would still be only the third leg of a recovery from 1.1458, so even then market can be correcting and not reversing impulsively yet!

EURUSD 1h Elliott Wave Analysis

EURUSD Elliott Wave Analysis January 21 2015 technical chart for currency trading