EUR/GBP – 0.9025
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 :
Stand aside
Position : –
Target : –
Stop : –
Although the single currency has maintained a firm undertone after this week’s anticipated resumption of upmove and mild upside bias remains for recent rise to extend gain to 0.9060-70 but reckon upside would be limited to 0.9085-90 due to overbought condition and price should falter below 0.9100-10 today, risk from there has increased for a retreat later.
In view of this, would not chase this rise here and would be prudent to stand aside in the meantime. On the downside, whilst pullback to 0.8990-95 and 0.8850-60 cannot be ruled out, reckon support at 0.8922 would contain weakness and bring another rise later. Only below support at 0.8922 would signal a temporary top is in place, bring retracement of recent upmove to 0.8890-00 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.
