Trade Idea: EUR/GBP – Target met and stand aside

EUR/GBP – 0.9028

 
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, met target at 0.9025

Position : – Long at 0.8925

Target :  – 0.9025

Stop : –

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

 
Current anticipated rally adds credence to our bullishness and our long position entered at 0.8925 has met our upside target at 0.9025 with 100 points profit, hence bullishness remains for recent upmove to extend gain to 0.9050 but reckon upside would be limited to 0.9075-80 due to overbought condition and price should falter below 0.9100 today, risk from there has increased for a retreat later.

As we have taken profit on our long position entered at 0.i8925, would not chase this rise here and would be prudent to stand  aside in the meantime. On the downside, expect pullback to be limited to 0.8980-85 and 0.8850 ghoul hold, bring another rise later. Only below support at 0.8920-25 would abort and signal a temporary top is in place, bring retracement of recent upmove to 0.8890-00 first. 

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.