EUR/GBP – 0.8972
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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 up
New strategy :
Buy at 0.8915, Target: 0.9015, Stop: 0.8875
Position : –
Target :Â –
Stop : –
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As the single currency has maintained a firm undertone after breaking resistance at 0.8950, confirming our view that recent upmove has resumed and upside bias remains for test of psychological resistance at 0.9000, break there would encourage for headway to 0.9020 and possibly towards 0.9050, however, near term overbought condition should prevent sharp move beyond latter level, risk from there has increased for a retreat later.
In view of this, would not chase this rise here and would be prudent to buy euro on pullback as 0.8900-10 should limit downside. Below previous resistance at 0.8899 would defer and risk correction to 0.8870-75 but only break of support at 0.8829 would confirm top is formed instead, bring correction to 0.8800 first.Â
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.
