EUR/GBP – 0.8964
New strategy :
Position : –
Target : –
Stop : –
Despite falling to 0.8886 yesterday, the subsequent rebound has retained our view that further consolidation within recent established range would be seen and initial gain towards 0.9000 cannot be ruled out, however, as broad outlook remains consolidative, reckon upside would be limited to resistance at 0.9033 and bring retreat later.
In view of this, would not chase this rise here and would be prudent to stand aside for now. Below 0.8910-15 would bring another test of said support at 0.8886 but only break of indicated previous support at 0.8856 would signal top has been formed at 0.9033 and bring further fall to 0.8820-25, then towards 0.8800.
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.