EUR/GBP – 0.8482
Recent wave: Major double three (A)-(B)-(C)-(X)-(A)-(B)-(C) is unfolding and 2nd (A) has possibly ended at 0.6936.
Trend: Near term down
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Despite yesterday’s brief breach of resistance at 0.8512, lack of follow through buying and current retreat suggest consolidation would be seen and pullback to 0.8450 cannot be ruled out, however, reckon previous resistance at 0.8415 (now support) should limit downside and bring another rebound later.
On the upside, above 0.8530-35 would add credence to our view that a temporary low has been formed at 0.8312, hence near term upside risk remains for the rebound from 0.8312 to bring retracement of recent decline to 0.8545-50, however, reckon resistance at 0.8580 would limit upside and 0.8600-10 would hold from here. As near term outlook is mixed, would be prudent to stand aside in the meantime.
Our preferred count is that, after forming a major top at 0.9805 (wave V), (A)-(B)-(C) correction is unfolding with (A) leg ended at 0.8400 (A: 0.8637, B: 0.9491 and 5-waver C ended at 0.8400. Wave (B) has ended at 0.9413 and impulsive wave (C) has either ended at 0.8067 or may extend one more fall to 0.8000 before prospect of another rally. Current breach of indicated resistance at 0.9043 confirms our view that the (C) leg has ended and bring stronger rebound towards 0.9150/54, then towards 0.9240/50.
