EUR/GBP – 0.8582
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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
Original strategy :
Buy at 0.8465, Target: 0.8565, Stop: 0.8425
Position : –
Target :Â –
Stop : –
New strategy :
Buy at 0.8530, Target: 0.8630, Stop: 0.8490
Position : –
Target :Â –
Stop : –
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As the single currency has accelerated after breaking indicated resistance at 0.8531 (now support), adding credence to our bullishness and signal another leg of corrective rise from 0.8312 low is in progress, hence upside bias remains for further gain to 0.8620-30, however, as this move is viewed as retracement of recent decline, reckon upside would be limited to 0.8650-60, risk from there is seen for a retreat later.
In view of this, we are still looking to buy euro on pullback but at a higher level as 0.8531 (previous resistance) should limit downside and bring another rise. Below 0.8500-05 would defer and suggest top is possibly formed, bring weakness to support at 0.8457 but break of previous resistance at 0.8452 is needed to confirm and bring test of support at 0.8423 first.
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.
