EUR/GBP – 0.9051
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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 :
Sell at 0.9080, Target: 0.8980, Stop: 0.9120
Position : –
Target :Â –
Stop : –
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Although the single currency has risen again after brief retreat to 0.8995 and near term upside risk remains for recent upmove to extend gain to 0.9080, loss of near term upward momentum should prevent sharp move beyond 0.9100 and bring retreat later, below said support at 0.8995 would suggest top is possibly formed, bring test of 0.8965-70 but below 0.8945-50 is needed to add credence to this view, bring retracement of recent upmove towards support at 0.8922.
In view of this, would not chase this rise here and we are inclined to sell euro on next upmove. Above 0.9110-20 would risk gain to 0.9145-50, however, still reckon sharp move beyond there should not be repeated and upside should be limited to 0.9175-80, price should falter below 0.9100, bring correction later.
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.
