S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
This analysis from the Overbalance series aims to identify three financial instruments, analyzed primarily on the daily/four-hour (D1/H4) timeframe. The analysis relies solely on the Overbalance methodology, which helps determine points where a trend may continue or where a reversal might occur.
Today’s analysis covers three instruments, evaluated solely in terms of 1:1 correction structures.
GBPUSD
The GBPUSD price has broken its downward trend by rising above the 1.3360 level, which, according to the Overbalance methodology, paves the way for a larger upward correction or even a trend reversal. Currently, the 1.3360 level—the upper boundary of the negated 1:1 geometry—serves as key support. Conversely, for a return to the downtrend, the price would also need to fall below the 1.3315 level, where the lower boundary of the local 1:1 uptrend pattern is located.
GBPUSD – H4 chart. Source: xStation
AUDNZD
The AUDNZD pair has been in an uptrend for quite some time. The latest correction was exactly the same size as the previous ones, marked by the green rectangle. We are currently observing a local corrective move. If the correction continues, key support based on the Overbalance methodology is at the 0.6992 level, where the lower boundary of the 1:1 pattern is located. As long as the price remains above this level, the uptrend remains in effect.
AUDNZD – H4 timeframe. Source: xStation
USDCHF
USDCHF prices have been trending downward for quite some time, but since late January we have seen a dynamic upward correction. Currently, the price has rebounded from a key resistance level at 0.8042, where the upper boundary of the largest 1:1 pattern is located, which, according to the Overbalance methodology, may signal a return to the downtrend. For this scenario to be confirmed, the price should sustainably fall below the 0.7902 level, where the lower boundary of the smaller pattern is located. In that case, a acceleration of the decline toward recent lows would be possible. Conversely, a break above the 0.8042 level would open the way for further gains.
USDCHF – H4 timeframe. Source: xStation
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