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EUR/GBP Elliott Wave
Last week the EUR/GBP pair was trading in an upward movement, corrective (C) wave (coloured green) of the bigger (2) wave (coloured red) was developing. Yesterday during the European session we could observe ascending movement toward the 0.8145 level. Therefore, during the early New York session the EUR/GBP pair continued trading in a bullish move and the price reached a new 2 days high at 0.8148 level. We can consider this move as the end of the 2 wave (coloured blue) of the bigger (1) wave (coloured green). At the moment this major pair is trading around 0.9131 level and we are expecting to see the price lower today. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.8076 (161.8% of wave 1). To reduce the risk, we can use invalidation at 0.8149 level as stop loss.
Support and Resistance
(S3) 0.8107 (S2) 0.8117 (S1) 0.8123 (PP) 0.8134 (R1) 0.8144 (R2) 0.8150 (R3) 0.8161
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0500 with stop loss 1.0800 and take profit at 0.9798 are recommended.
