EUR/GBP – 0.9103
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
Original strategy :
Buy at 0.9000, Target: 0.9130, Stop: 0.8960
Position : –
Target : –
Stop : –
New strategy :
Buy at 0.9000, Target: 0.9130, Stop: 0.8960
Position : –
Target : –
Stop : –
As the single currency has retreated after yesterday’s brief rise to 0.9143, retaining our view that minor consolidation below this level would be seen and pullback to 0.9050-55 cannot be ruled out, however, reckon downside would be limited to 0.9015-20 and renewed buying interest should emerge around 0.9000, bring another upmove later, break of said resistance would extend recent erratic rise to 0.9160, however, weakening of near term upward momentum should prevent sharp move beyond 0.9180-85 and price should falter below 0.9200.
In view of this, would not chase this rise here and would be prudent to buy euro on subsequent pullback as 0.9000-05 would limit downside. Below 0.8960-70 would defer and suggest a temporary top is possibly formed, bring correction to 0.8922 support which is likely to hold from here.
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.
