Trade Idea : EUR/GBP - Sell at 0.8950

Elliott Wave Daily |

Written by Action Forex |

Nov 03 16 15:25 GMT

EUR/GBP – 0.8918

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 up

New strategy  :

Sell at 0.8950, Target: 0.8850, Stop: 0.8990

Position : –

Target :  –

Stop : –

Euro’s intra-day selloff below indicated support at 0.8880 signals top has been formed at 0.9049 yesterday and consolidation with downside bias is seen for weakness to 0.8845-50, below would retain bearishness and extend the corrective decline from 0.9576 top for retracement of early upmove to 0.8800-10 but support at 0.8776 should hold from here.

In view of this, we are looking to sell euro on recovery as 0.8945-50 should limit upside. Above 0.8990-95 would abort and signal low is formed instead, risk a stronger rebound to 0.9020 and then test of said resistance at 0.9049, however, reckon upside would be limited to 0.9090-00 and resistance at 0.9142 should cap upside.

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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Pairs Covered: EUR/USD, USD/JPY, GBP/USD, USD/CHF

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Trade Idea : EUR/GBP - Sell at 0.8950