EUR/GBP – 0.9213
Original strategy :
Buy at 0.9115, Target: 0.9215, Stop: 0.9075
Position : –
Target : –
Stop : –
New strategy :
Buy at 0.9115, Target: 0.9215, Stop: 0.9075
Position : –
Target : –
Stop : –
As the single currency has eased after faltering below yesterday’s high at 0.9237, suggesting minor consolidation below this level would be seen and pullback to 0.9150-55 cannot be ruled out, however, reckon support at 0.9111 would contain downside and bring another rise later, above said resistance at 0.9237 would add credence to our bullish view that recent upmove is still in progress and may extend further gain to 0.9250 but weakening of near term upward momentum should prevent sharp move beyond 0.9270-75 and price should falter below 0.9300-05, risk from there has increased for a retreat to take place later.
In view of this, would not chase this rise here and would be prudent to buy euro on subsequent pullback as 0.9110-15 would limit downside. Below 0.09090 would defer and suggest a temporary top is possibly formed, risk test of support at 0.9063, however, break there is needed to add credence to this view, bring retracement of recent upmove towards 0.9005-10.
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.
