EUR/GBP – 0.8860
Original strategy :
Bought at 0.8810, Target: 0.8910, Stop: 0.8770
Position : – Long at 0.8810
Target : – 0.8910
Stop : – 0.8770
New strategy :
Hold long entered at 0.8810, Target: 0.8910, Stop: 0.8770
Position : – Long at 0.8810
Target : – 0.8910
Stop : – 0.8810
As the single currency did find renewed buying interest at 0.8792 and has risen again, retaining our bullish view that the rise from 0.8690 low is still in progress and upside bias remains for this move to bring test of resistance at 0.8868, break there would add credence to our view that the decline from 0.9015 has ended, bring further gain to 0.8890-00 and later towards 0.8930.
In view of this, we are holding on to our long position entered at 0.8810. Only below said support at 0.8792 would abort and signal top is formed instead, bring test of indicated support at 0.8760 but below there is needed to indicate the rebound fro 0.8690 has ended, then further all to 0.8720-25 would follow.
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.
