HomeTrade IdeasElliott Wave DailyTrade Idea: EUR/GBP - Hold long entered at 0.8620

Trade Idea: EUR/GBP – Hold long entered at 0.8620

EUR/GBP – 0.8663

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

Original strategy  :

Bought at 0.8620, Target: 0.8750, Stop: 0.8600

Position : – Long at 0.8620

Target :  – 0.8750

Stop : – 0.8600

New strategy  :

Hold long entered at 0.8620, Target: 0.8720, Stop: 0.8600

Position : – Long at 0.8620

Target :  – 0.8720

Stop : – 0.8600

As the single currency found support just above last week’s low at 0.8605 and has rebounded, retaining our bullishness and as long as this support holds, mild upside bias remains for another rebound, a break of indicated resistance at 0.8700 would bring test of 0.8727, above there would suggest low is formed, then gain to 0.8760 would follow, break there would suggest the pullback from 0.8788 has ended, bring retest of this level, a breach there would extend the rise from 0.8403 low to 0.8800 and later 0.8825-30.

In view of this, we are holding on to our long position entered at 0.8620. A firm break below 0.8605 (50% Fibonacci retracement of 0.8422-0.8788) would defer and suggest top has possibly been formed at 0.8788, risk test of 0.8560-65 (61.8% Fibonacci retracement) but support at 0.8547 should remain intact. 

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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