Trade Idea: EUR/GBP – Buy at 0.8970
By admin | July 4, 2011
EUR/GBP – 0.9044
Recent wave: v of wave 3 has possibly ended at 0.8067 but wave 4 should hold below 0.9050
Trend: Down
Original strategy :
Buy at 0.8855, Target: 0.8995, Stop: 0.8815
New strategy :
Buy at 0.8970, Target: 0.9100, Stop: 0.8925
Remark: No update tomorrow, next Elliott Wave Trade Idea update will be made on Monday 4 July.
Euro’s breach of previous resistance at 0.9043 and intra-day rise to 0.9070 suggest recent upmove is still in progress and further gain to indicated upside target at 0.9090/00 would be seen, however, near term overbought condition should limit upside today and reckon previous resistance at 0.9150/54 would hold from here and bring minor correction later.
In view of this, would not chase this move here and we are still looking to reinstate long on dips as yesterday’s low at 0.8967 should limit downside. Below 0.8925/30 would defer and suggest top is possibly formed and risk pullback to 0.8890/00 but support at 0.8849 should remain intact, bring another rally next week.
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. Above psychological resistance at 0.9043 would signal the (C) leg has ended and bring stronger rebound towards 0.9150/54.
