Commerce Concept: EUR/GBP - Stand apart

EUR/GBP – 0.7361

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

Trend: Sideways

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

Remark: Due to New Year holidays, next Trade Ideas update will be made on Monday 4 Jan 2016.

As the single currency has retreated after faltering below indicated resistance at 0.7416, retaining our view that further consolidation below this last week’s high would be seen and pullback to 0.7330 cannot be ruled out but break of support at 0.7307 is needed to signal top has been formed at 0.7416, bring retracement of recent upmove to 0.7275-80, then test of previous support at 0.7239-40, break there would add credence to this view, bring further decline to 0.7200 first.

On the upside, above said resistance at 0.7416 would signal the rise from 0.6982 has resumed 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 - Stand apart