Feb 23 14:13 GMT


Forex Expos

Trade Idea: EUR/GBP - Sell at 0.8465 or buy at 0.8300 Print E-mail
Elliott Wave Daily | Written by Action Forex | Sep 18 13 15:13 GMT

EUR/GBP - 0.8360

Recent wave: v of wave 3 has possibly ended at 0.8067 but wave 4 should hold below 0.9050

Trend: Near term down

Original strategy       :

Sell at 0.8465, Target: 0.8350, Stop: 0.8500


Buy at 0.8300, Target: 0.8420, Stop: 0.8265


New strategy  :

Sell at 0.8465, Target: 0.8350, Stop: 0.8500


Buy at 0.8300, Target: 0.8420, Stop: 0.8265

Position: -
Target:  -

As the single currency has fallen again after brief bounce to 0.8411 yesterday, suggesting recent decline is still in progress and this decline in the wave (c) of larger degree wave 4 should extend further weakness to 0.8315-20 but loss of downward momentum should prevent sharp fall below 0.8300 and reckon 0.8286 (50% Fibonacci retracement of entire rise from 0.7756-0.8815) would hold from here, risk from there is seen for a rebound to take place soon. Above 0.8411 would bring correction to 0.8440-50, however, renewed selling interest should emerge around 0.8465-70 and bring another

In view of this, we are looking to sell euro on recovery as 0.8454 (last week's high) should limit upside and we would also turn long on next decline. Only above 0.8500 would suggest low is formed and bring a stronger rebound to 0.8555-60, however, break there is needed to confirm and bring rebound to 0.8590-00. Below 0.8286 retracement level would risk weakness towards 0.8250 but reckon previous resistance at 0.8225 would contain downside, bring another rebound later.

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.


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