Mon, Jun 05, 2023 @ 07:59 GMT
HomeTrade IdeasElliott Wave DailyTrade Idea: EUR/GBP - Target met and stand aside

Trade Idea: EUR/GBP – Target met and stand aside

EUR/GBP – 0.8655

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, met target at 0.8750

Position : – Long at 0.8620

Target :  – 0.8720

Stop : –

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

The single currency found renewed buying interest at 0.8618 and staged the anticipated rebound, our long position entered at 0.8620 met upside target at 0.8720 with 100 points profit, having said that, as euro ran into selling interest at 0.8735 and has retreated, suggesting further consolidation would take place and pullback to 0.8660 cannot be rule out, however, reckon 0.8635-40 would limit downside and bring another rise later. Above 0.8635 would suggest the fall from 0.8788 has ended, bring test of indicated resistance at 0.8760, break there would confirm and bring retest of 0.8788, a breach there would extend the rise from 0.8403 low to 0.8800 and later 0.8825-30.

As we have taken profit on our long position entered at 0.8620, would not chase this rise here and would be prudent to stand asIde for now. Below 0.8620 would risk test of 0.8605 (previous support as well as 50% Fibonacci retracement of 0.8422-0.8788), break there would suggest top has 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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