EUR/GBP – 0.8036
Recent wave: v of wave 3 has possibly ended at 0.8067 but wave 4 should hold below 0.9050
Trend: Down
Original strategy :
Bought at 0.8080, stopped at 0.8035
Position: - Long at 0.8080
Target: -
Stop:- 0.8035
New strategy :
Stand aside
Position: -
Target: -
Stop:-
As the single currency has fallen again after brief recovery, suggesting recent downtrend is still in progress and near term downside risk remains for further weakness to psychological support at 0.8000, however, loss of near term downward momentum should prevent sharp fall below there and reckon 0.7970/75 would hold from here, bring a much-needed correction later.
In view of this, would not chase this decline here and would be prudent to stand aside in the meantime. Above 0.8090 would suggest a temporary low is possibly formed and bring retracement of recent decline to 0.8139-43 resistance which is likely to limit upside and price should falter below 0.8160-65, bring another decline.
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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