EUR/GBP – 0.8823

 
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

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Original strategy  :

Buy at 0.8660, Target: 0.8860, Stop: 0.8620

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 0.8660, Target: 0.8860, Stop: 0.8620

Position : –

Target :  –

Stop : –

 
Although the single currency has rebounded after finding support at 0.8719 and retest of recent high at 0.8866 cannot be ruled out, break there is needed to confirm recent erratic upmove from 0.8304 low has resumed and extend further gain to 0.8880, then 0.8900, having said that, as broad outlook remains consolidative, reckon current c leg of larger degree wave b should be limited to 0.8950 and price should falter well below 0.9000, bring retreat later. If said resistance at 0.8866 continues to hold, then further consolidation would take place and another retreat to 0.8740-50 cannot be ruled out, however, downside should be limited to support at 0.8652, bring another rise later.

In view of this, we are looking to buy euro on subsequent pullback but one should exit on such rise. Below 0.8650 would defer and risk test of 0.8620, a break below there would signal top is formed instead, bring further fall to 0.8620, then 0.8600 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.

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