EUR/GBP has been under a larger corrective pressure, than we first expected and has declined through the 38.2% corrective target for a firm test of the 50% corrective target at 0.8890 (the low has been seen at 0.8904). To indicate the completion of wave iv we need a break above minor resistance at 0.8990 and more importantly a break above resistance at 0.9040. A break above the later confirms that wave v is unfolding for the final rally towards 0.9742.
R3: 0.9121
R2: 0.9040
R1: 0.8990
Pivot: 0.8962
S1: 0.8900
S2: 0.8874
S3: 0.8839
Trading recommendation:
Our stop at 0.8910 has been hit for a 100 pips loss. We will re-buy EUR at 0.8900 or upon a break above 0.9040.
