EUR/GBP – 0.7231
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
New strategy :
Buy at 0.7145, Target: 0.7260, Stop: 0.7110
Position : –
Target : –
Stop : –
Yesterday’s anticipated rally adds credence to our view that low has been formed at 0.6982 last week and bullishness remains for the rebound from there to bring retracement of recent decline, above 0.7250-55 would encourage for further gain to 0.7280 and possibly towards 0.7300-05 which is likely to hold from here due to near term overbought condition.
In view of this, we are looking to buy euro again on dips as 0.7145-50 should limit downside. Below previous minor resistance at 0.7111 would dampen our bullishness and suggest top is possibly formed, risk weakness to 0.7070-75, however, only break of support at 0.7051 would signal the rebound from 0.6982 has ended, bring further fall to 0.7004 support 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 - Purchase once more at zero.7145
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