EUR/GBP – 0.8810
Original strategy :
Sell at 0.8885, Target: 0.8750, Stop: 0.8920
Position : –
Target : –
Stop : –
New strategy :
Sell at 0.8885, Target: 0.8750, Stop: 0.8920
Position : –
Target : –
Stop : –
Although the single currency recovered after anticipated fall to 0.8756 and consolidation above this level would be seen, reckon upside would be limited to 0.8880-85 and bring another decline, below said support at 0.8756 would extend the fall from 0.9015 towards previous support at 0.9733 which is likely to hold on first testing.
In view of this, we are looking to reinstate short on recovery as 0.8880-85 should limit upside. Above previous support at 0.8915 (now resistance) would defer and prolong choppy trading, risk rebound to 0.8935-40, however, still reckon said resistance at 0.8982 would cap upside and bring another retreat later. Only above indicated resistance at 0.9015 would risk test of previous resistance at 0.9033 but only a breach of this level would signal an upside break of recent established broad range has occurred, then subsequent rise to 0.9070-75 would follow.
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.
