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Trade Idea: EUR/GBP - Buy at 0.8630 Print E-mail
Elliott Wave Daily | Written by Action Forex | Jan 11 17 15:30 GMT
EUR/GBP - 0.8707


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  :

Buy at 0.8640, Target: 0.8780, Stop: 0.8600

Position : -

Target :  -

Stop : -


New strategy  :

Buy at 0.8630, Target: 0.8780, Stop: 0.8590

Position : -

Target :  -

Stop : -


Although euro’s retreat after yesterday’s rise to 0.8764 suggests consolidation below this level would be seen and initial downside risk remains for pullback to 0.8630-35, reckon 0.8600 would contain downside and bring another rise later, above said resistance at 0.8764 would signal recent erratic rise from 0.8304 is still in progress for headway to 0.8800 but near term overbought condition should limit upside to 0.8830-35.

In view of this, would not chase this rise here and would be prudent to buy euro on further pullback as 0.8630 should limit downside. Below 0.8600 would bring weakness to previous resistance at 0.8582 (minor wave i top) but break there is needed to signal top is formed, bring subsequent fall to 0.8550 and possibly towards 0.8510-20 which is likely to hold on first testing.

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.

 

About the Author

Candlesticks Intraday Trade Ideas Update Schedule (GMT):
1st Update: 0630 - 0700; 2nd Update: 0930 - 1000; 3rd Update: 1230 - 1300; 4th Update: 1500 - 1530
Pairs Covered: EUR/USD, USD/JPY, GBP/USD, USD/CHF

Elliott Wave Daily Trade Ideas Update Schedule (GMT):
AUD/USD, EUR/JPY: 0800 - 0830; EUR/GBP, USD/CAD: 1430 - 1500 GMT

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