EUR/GBP was correcting upwards to our target at 0.9034 (the low was seen at 0.8995). This could be enough to complete wave iv and set the stage for more upside pressure in wave v towards 0.9742. However, a more prolonged sideways consolidation is likely to occur before renewed upside pressure towards the long-term target.
The coronavirus will continue to cause volatile swings in the financial markets. We should not be surprised to see larger drops followed by larger and quicker than normal correction until the virus is under control.
R3: 0.9500
R2: 0.9337
R1: 0.9243
Pivot: 0.9157
S1: 0.9121
S2: 0.9067
S3: 0.8995
Trading recommendation:
We sold EUR at 0.9050 and book a nice profit of 145 pips and we will look for a possible buying opportunity at 0.9010.
