EUR/GBP – 0.8943
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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
Original strategy :
Bought at 0.8925, Target: 0.9025, Stop: 0.8885
Position : – Long at 0.8925
Target :Â – 0.9025
Stop : – 0.8885
New strategy :
Hold long entered at 0.8925, Target: 0.9025, Stop: 0.8885
Position : – Long at 0.8925
Target :Â – 0.9025
Stop : – 0.8885
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Although the single currency has retreated after rising to 0.8976 and further consolidation would be seen, as long as indicated support at 0.8891 holds, mild upside bias remains for another rebound, above said resistance at 0.8976 would signal the pullback from 0.8995 has ended, bring retest of this level, however, break there is needed to confirm upmove has resumed for test of psychological resistance at 0.9000, then 0.9020 but reckon upside would be limited to 0.9050 due to overbought condition, risk from there has increased for a retreat later.
In view of this, we are holding on to our long position entered at 0.8925. A break of said support at 0.8891 would defer and suggest a temporary top is formed instead, bring correction to 0.8860-65 but only break of support at 0.8829 would provide confirmation, bring correction to 0.8800 first.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.
