Daily Market Analysis By FXOpen

LTC and EOS ? Pullback or the begging of a downtrend?



LTC/USD

The price of Litecoin has been in a decline from today?s open at $159 which was its highest point so far. It made a decrease of 9.67% at its lowest today but is currently being traded slightly high at is sitting at around $149.11.


On the hourly chart, you can see that today?s open the high made after a breakout from the descending triangle in which the price was since the 10th of January. The price fell from its high of $185.8 to the horizontal support level at $122 on three occasions and after the third test, a higher high was made and then finally a breakout to the upside on Tuesday. As the price continued making a higher high it exceeded the $155 horizontal level which was the mid-range of the correctional structure in the descending triangle but failed to go above the midpoint high at $166.7 before making a pullback.

If the prior correction ended with the breakout being the continuation of the uptrend of the higher degree, then the current retracement would be only a local one.  In that case from the 27th of January when another retest of the significant horizontal level at the $120 zone was made we have seen the start of the next five-wave impulse with the breakout wave being its 3rd. Now as the price is going to the downside it should find support on the ending point of the assumed 1st wave which is at $146. This was tested today with the price action showing a wick on the hourly chart it appears that support is present at those level.

However if the price continues to move further to the downside it could mean that this increase seen with a breakout to the upside was the continuation of the corrective count.

EOS/USD

From its highest point on Monday at $3.2787, the price of EOS has fallen by 11.75% on the same day and enter a recovery since. It reached $3.15 yesterday which could have been the end of the recovery as it started decreasing again and is currently being traded just above $3.


As you can see from the hourly chart the price made a breakout below its ascending trendline that dates from the 27th of January. This ascending trendline is the 3rd wave from the upward move that starts on the 22nd of January, but it is still unclear whether or not it is an impulse or a corrective count. Judging by the wave personality it looks more corrective at this point which is why I?ve labeled it as an ABC. This is soon going to be validated as if the price continued moving to the downside below the $2.88 zone it could very well mean that we have seen the correctional ABC count.

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.

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GBP/USD and GBP/JPY: British Pound Eyes More Upsides



GBP/USD remained strong above 1.3700, but it is facing hurdles near 1.3750. GBP/JPY is gaining momentum and it is trading well above 144.00.

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound settled above the 1.3700 resistance zone against the US Dollar.
• There is a rising channel forming with support near 1.3718 on the hourly chart of GBP/USD.
• GBP/JPY gained momentum after it broke 143.80 and 144.00.
• There was a break below a major declining channel with resistance near 143.30 on the hourly chart.

GBP/JPY Technical Analysis


The British Pound started a strong increase from the 142.80 swing low against the Japanese Yen. The GBP/JPY pair traded above the 143.20 and 143.50 resistance levels to move into a positive zone.

There break below a major declining channel with resistance near 143.30 on the hourly chart. The pair settled nicely above the 144.00 level and the 50 hourly simple moving average. The pair even cleared the 144.50 resistance zone and it traded close to the 145.00.

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BTC and XRP ? Bullish momentum confirmed



BTC/USD

The price of Bitcoin has broken out from its prior resistance and impulsively came to $48,200 at its highest point today. From its lowest point on Sunda when it was sitting around $37,430, this is an increase of 28%. Currently, a minor retracement is being made with the price sitting at $46,604 but is still in an upward trajectoty.



This breakout indicates that the prior correctional formation from the 10th of January has ended and now we have a clear confirmation with the bullish momentum indicating a strong uptrend continuation. After the five-wave move inside the ascending channel was ended we have seen a minor pullback but an immediate breakout to the upside. This was most likely the 3rd sub-wave of the higher degree 3rd wave which is why further upside movement would now be expected.

As the price is to develop its five-wave pattern further higher highs could be seen in the upcoming days with potentially exceeding the $60,000 mark by the end of its development. However not that an impulsive breakout has seen a local correction might form as the 4th wave should develop before further upside. It is still unclear where the 4th wave could land but most likely we are going to see a retest of the prior all-time high before uptrend continuation.

LTC and EOS ? Resistance seen but for how long?



LTC/USD

The price of Litecoin has been increasing in the past week, and from last Thursday when it was sitting at $141.27 at its lowest, we have seen an increase of 37.8$ measured to its highest point yesterday at $194.31. Since then the price made a pullback to $170.54 but is again back in an upward trajectory, currently sitting at $188.


On the hourly chart, we can see that the price broke the prior high made on the 10th of January when the price of Litecoin was sitting at $185.58. This confirmed the impulsiveness behind the move and that the previous correction ended at $118. We have seen the development of the 3rd sub-wave of the higher degree impulse which is why further upside would be expected. However if yesterday?s high was the end of the 3rd wave, now the price might be set for a local correction.

Wave 4 should develop optimally to the 0.382 Fibonacci level which would bring the price of Litecoin to $165. But when the price tested prior resistance for support and confirms the bullish interest it is likely to continue moving past yesterday?s high and end around $230 before the completion of this five-wave move.

GBP/USD and EUR/GBP: British Pound Gains Momentum



GBP/USD is gaining bullish momentum above the 1.3800 and 1.3840 resistance levels. EUR/GBP is declining and it broke a major support at 0.8745.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a strong increase above the 1.3800 resistance zone.
• There was a break above a major contracting triangle with resistance near 1.3790 on the hourly chart of GBP/USD.
• EUR/GBP started a fresh decline after it failed to clear the main 0.8800 resistance zone.
• There was a break below a key bullish trend line with support near 0.8760 on the hourly chart.

GBP/USD Technical Analysis



After forming a base above the 1.3750 and 1.3780, there was a fresh increase in the British Pound against the US Dollar. The GBP/USD pair broke the 1.3800 and 1.3840 resistance levels to move further into a positive zone.

Moreover, there was a break above a major contracting triangle with resistance near 1.3790 on the hourly chart of GBP/USD. The pair strength and it was able to clear the 1.3850 resistance level.

There was also a break above the 1.3880 level and the pair settled nicely above the 50 hourly simple moving average. A new multi-month high is formed near 1.3901 on FXOpen and the pair is currently consolidating gains.

An initial support on the downside is near the 1.3880 level. The first key support is near the 1.3870 level. It is close to the 23.6% Fib retracement level of the upward move from the 1.3775 low to 1.3901 high.

The next key support is near the 1.3850 level. Any more losses may possibly lead the pair towards the 1.3840 level. It coincides with the 50% Fib retracement level of the upward move from the 1.3775 low to 1.3901 high.

On the upside, the 1.3900 level is a short-term resistance. A close above the 1.3900 level will most likely set the pace for a move towards the 1.4000 level in the near term.

BTC and XRP ? New highs expected



BTC/USD

The price of Bitcoin has continued its upward trajectory from last Monday and came up from $37,691 at its lowest point to $49,808 at its highest point on Sunday which was an increase of 32.15%. From Sunday?s high, we have seen a pullback to the $46,000 zone but the price is now once again in an upward trajectory. Currently, it is sitting just slightly above $49,000 mark and is testing its horizontal resistance. 



On the hourly chart, you can see that this rise is the next developing 5th wave from the higher degree impulse and from the lower degree one as well. This is why further upside would be expected but is most likely the ending wave from the rise that started on the 27th of January. 

The price has been forming an ascending triangle from the 9th of February when the 3rd impulse wave was formed out of the lower degree. Now as the price has reached the apex of the triangle and then retraced back it appears that it made the completion of the 4th wave corrective structure. 

If this is true now another impulse to the upside has started with the price leading towards a new all-time high, potentially above $52,000.

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LTC and EOS ? Correction soon to come?



LTC/USD

The price of Litecoin continued increasing since last week. From its lowest point last Thursday when it was sitting at $175.78 we have seen an increase of 36.57% measured to its highest point today at $240. Currently, it is being traded just below $230, but the price is in an upward trajectory overall.



Looking at the hourly chart, you can see that the price of Litecoin was in an upward trajectory from the 27th of January when it made the second test of the horizontal support level which was the lower level of the descending triangle in which it was correcting.  As a breakout was made in early February it set the price for a higher high than in January. This is the development of the next five-wave move to the upside.

There is still more room to go before the end of this five-wave impulse but it is still unclear where the price increase could end. If the 3rd wave ended on the $194.31 level then currently we are seeing the development of the final wave?s 3rd sub-wave. In that case, another leg up would be expected of the lower degree. But if the 3rd wave of the higher degree count ended on yesterday?s high, then the price of Litecoin has more increasing potential.


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