EUR/GBP – 0.8918
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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
New strategy :
Stand aside
Position : –
Target :Â –
Stop : –
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As the single currency has risen again after finding support at 0.8829, suggesting near term upside risk remains and gain to resistance at 0.8950 cannot be ruled out, however, beak there is needed to retain bullishness and confirm recent upmove has resumed for headway to 0.8975-80, then towards psychological resistance at 0.9000 which is likely to hold from here due to near term overbought condition.
In view of this, would not chase this rise here and would be prudent to stand aside in the meantime. Below 0.8865-70 would bring test of said support at 0.8829 but break there is needed to prolong consolidation below said resistance at 0.8950 and bring another corrective fall to 0.8780-85, then towards previous support at 0.8743 which is likely to hold from here.Â
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.
