EUR/GBP – 0.8504
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 down
New strategy :
Buy at 0.8465, Target: 0.8565, Stop: 0.8425
Position : –
Target : –
Stop : –
As the single currency has risen again after brief pullback, suggesting further gain to 0.8531 resistance would be seen, however, break there is needed to signal another leg of corrective rise from 0.8312 low is underway for retracement of recent decline to 0.8550 and then 0.8580 but price should falter below resistance at 0.8592, risk from there is seen for a retreat later.
In view of this, we are looking to buy euro on pullback as 0.8460-65 should limit downside and bring another rise. Below support at 0.8423 would abort and signal the rebound from 0.8384 has ended, bring further fall to 0.8400 but said support at 0.8384 should remain intact. Only a break below support at 0.8351 would revive bearishness and signal the rebound from 0.8312 low has ended at 0.8531 and bring further fall towards this support at 0.8312 which is likely to hold from here.
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.