Elliott Wave Daily

Trade Idea: EUR/GBP - Stand aside

Typography

EUR/GBP - 0.8957


Original strategy  :

Sold at 0.8975, stopped at 0.9015

Position : - Short at 0.8975

Target :  -

Stop : - 0.9015


New strategy  :

Stand aside

Position : -

Target :  -

Stop : -

 
Although euro’s rebound from 0.8856 turned out to be stronger than expected, as the single currency has retreated after faltering below resistance at 0.9033, suggesting further choppy trading would be seen and pullback to 0.8930-35, then 0.8900 cannot be ruled out, however, price should stay well above said support at 0.8856 and bring further consolidation.

In view of this, would not chase this rise here and would be prudent to stand aside in the meantime. Above 0.9000 would bring another test of resistance at 0.9033 but break there is needed to the rebound from 0.8856 is still in progress for further gain to 0.9060 and later towards 0.9090-00.

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.