EUR/GBP – 0.9166
Original strategy :
Buy at 0.9000, Target: 0.9130, Stop: 0.8960
Position : –
Target :Â –
Stop : –
New strategy :
Buy at 0.9070, Target: 0.9190, Stop: 0.9030
Position : –
Target :Â –
Stop : –
Â
As the single currency has continued moving higher, adding credence to our bullish view that recent upmove is still in progress and may extend further gain to 0.9190-00, however, weakening of near term upward momentum should prevent sharp move beyond 0.9220 and price should falter below 0.9245-50, risk from there has increased for a retreat to take place later.
In view of this, would not chase this rise here and would be prudent to buy euro on subsequent pullback as 0.9065-70 would limit downside. Below 0.9045-50 would defer and suggest a temporary top is possibly formed, bring correction to 0.9005-10 but downside should be limited to 0.8970-75 and 0.8922 support should remain intact, bring another rally.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.
