Market Overview
EUR/GBP has started with a bullish mood this week, yesterday we saw this major pair pushing 100 pips higher before this currency has found resistance at 0.8376 and started pushing 20 pips lower to 0.8353, where USD/JPY finished the first trading day. Today we saw price braking yesterday’s high and reaching 0.8389. All the news released this morning were favourable for the euro, so we can expect continuation of an uptrend, but we need to see news for the GBP Public Sector Net Borrowing before we make the final decision.
Support and Resistance
(S3)0.8238 (S2)0.8275 (S1)0.8298 (PP)0.8336 (R1)0.8373 (R2)0.8396 (R3)0.8434
Important News
(EUR) French Flash Manufacturing PMI
(EUR) French Flash Services PMI
(EUR) German Flash Manufacturing PMI
(EUR) German Flash Services PMI
(EUR) Flash Manufacturing PMI
(EUR) Flash Services PMI
(EUR) ECOFIN Meetings
(GBP) Public Sector Net Borrowing
(EUR) Industrial New Orders m/m
(EUR) Belgium NBB Business Climate
(GBP) BOE Gov King Speaks
Elliott Wave Analysis for EUR/GBP
EUR/GBP finishes 5 wave of a bigger A wave at 0.8390. According to our wave rules and assuming that 3 sub-waves of wave B will retrace around 50% of wave A, we can project our target points for the Wave B with our Fibonacci retracement (0.8275-0.8390) to 0.8332.
Trading Forecast
Based on Elliott Wave Rules we can expect the trend to go lower today. That is why we can come to a conclusion that we should open a SHORT position at 0.8376 with Stop Loss at 0.8390 and Take Profit at 0.8332
