EUR/GBP – 0.8288

Recent wave: wave v of wave 3 may extend to 0.8200

Trend: Sideways

Original strategy : 

Buy at 0.8130, Target: 0.8270, Stop: 0.8065

New strategy  : 

Buy at 0.8180, Target: 0.8320, Stop: 0.8115

As the single currency has maintained a firm undertone after this week’s anticipated rebound and price just broke above indicated minor resistance at 0.8274-76, adding credence to mildly bullish count that wave v has possibly ended at 0.8067 and consolidation with upside bias remains for gain towards 0.8320/30, then towards 0.8380/85.

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. As indicated above wave (B) has ended and impulsive wave (C) is now unfolding with 1: 0.8603, 2: 0.9150 and wave 3 already met our indicated downside target at 0.8230 and the wave v of 3 has either ended at 0.8067 or may extend one more fall but reckon 0.8033 (61.8% projection of 0.8774 to 0.8210 measuring from 0.8382) would hold, bring rebound later.

In view of this, we are still looking to reinstate long on pullback as 0.8165/70 should contain downside. Only below 0.8110/15 would risk a retest of 0.8067 but break there is needed to extend one more fall to 0.8033 (61.8% projection of 0.8774 to 0.89210 measuring from 0.8382) but reckon psychological support at 0.8000 would hold.