Commerce Concept: EUR/GBP - Exit lengthy entered at zero.7330

EUR/GBP – 0.7343

Recent wave: Major double three (A)-(B)-(C)-(X)-(A)-(B)-(C) is unfolding and weakness to 0.7000 would be seen.

Trend: Near term down

Original strategy  :

Bought at 0.7330, Target: 0.7430, Stop: 0.7295

Position : – Long at 0.7330

Target :  – 0.7430

Stop : – 0.7295

New strategy  :

Exit long entered at 0.7330

Position : – Long at 0.7330

Target :  –

Stop : –

Remark: Due to Christmas holidays, next Trade Ideas update will be made on Monday 28 Dec 2015.

Despite yesterday’s rise to 0.7416, the subsequent retreat suggests consolidation below this level would be seen and pullback to 0.7300 cannot be ruled out, however, reckon downside would be limited to 0.7275-80 and bring another rise. Only break of previous support at 0.7239-40 would signal a temporary top has been formed, bring at least a retracement of recent upmove to 0.7200 first.

In view of this, would be prudent to exit long entered at 0.7330 and stand aside in the meantime. Above said resistance at 0.7416 would revive bullishness and extend gain to 0.7450-60, however, as broad outlook remains consolidative, reckon upside would be limited and price should falter well below previous resistance at 0.7493, risk from there is seen for a retreat later.

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.

Commerce Concept: EUR/GBP - Exit lengthy entered at zero.7330