EUR/GBP – 0.8886
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: 0.8825
Position : – Long at 0.8810
Target : – 0.8910
Stop : – 0.8825
As the single currency has risen again after brief pullback, retaining our bullish view that the rise from 0.8690 low is still in progress and upside bias remains for this move to bring retracement of recent decline to 0.8910-15, then towards 0.8945-50, however, near term overbought condition should limit upside and price should falter well below resistance at 0.9015.
In view of this, we are holding on to our long position entered at 0.8810. Below 0.8828 support would defer and suggest top is possibly formed, bring test of indicated previous support at 0.8792 but break there is needed to confirm and test of key support at 0.8760 would follow, however, only breach there would indicate the rebound fro 0.8690 has ended.
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.
