EUR/GBP – 0.8639
Â
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 down
Original strategy :
Bought at 0.8530, met target at 0.8630
Position : – Long at 0.8530
Target :Â – 0.8630
Stop : –
New strategy :
Stand aside
Position : –
Target :Â –
Stop : –
Â
As the single currency has surged again after finding renewed buying interest at 0.8524 last week, adding credence to our bullishness and our long position entered at 0.8530 met our upside target at 0.8630 (with 100 points profit), having said that, as this move from 0.8312 low is viewed as retracement of recent decline, reckon upside would be limited to 0.8670 and price should falter below 0.8700, risk from there is seen for a retreat later.
As we have taken profit on our long position entered at 0.8530, would not chase this rise here and would be prudent to stand aside for now. Below 0.8595-00 would bring pullback to 0.8565-70 but break there is needed to signal top is possibly formed, bring subsequent test of said support at 0.8524, once this level is penetrated, this would provide confirmation.
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.
