EW ANALYSIS: EURGBP Can Be Forming A Bullish Triangle Pattern
Updated
Hello everyone,
EURGBP is trading sideways for the last two years within a very big contracting range. We see that path as a five A-B-C-D-E move where each leg has a characteristic of a correction. It’s a triangle that can be coming to an end of wave B. So, despite very strong leg up in the last few days, this can be still just an early start of a much bigger bullish trend that could lift pair even towards 0.95 area, where we see a nice psychological triangle measurement target.
However, what really matters to me at this point is a bounce from the lower trendline support which means that new, at least temporary swing is now underway to the upper side of a range; to 0.9000. So from a trading perspective, despite potentially limited upside there is room for trades on the long side, especially now when we see a completed five-wave rally. So, a three wave A-B-C pullback on hourly chart can be interested for longs. This view remains valid as long as 0.8655 level is not taken out.
Trade well!
EURGBP is trading sideways for the last two years within a very big contracting range. We see that path as a five A-B-C-D-E move where each leg has a characteristic of a correction. It’s a triangle that can be coming to an end of wave B. So, despite very strong leg up in the last few days, this can be still just an early start of a much bigger bullish trend that could lift pair even towards 0.95 area, where we see a nice psychological triangle measurement target.
However, what really matters to me at this point is a bounce from the lower trendline support which means that new, at least temporary swing is now underway to the upper side of a range; to 0.9000. So from a trading perspective, despite potentially limited upside there is room for trades on the long side, especially now when we see a completed five-wave rally. So, a three wave A-B-C pullback on hourly chart can be interested for longs. This view remains valid as long as 0.8655 level is not taken out.
Trade well!
Note
INTRADAY UPDATE: EURGBP still can be trading within sub-wave (iv), so we still expect a final drop into a support zone for wave (v) of c, from where a rally may begin.Note
EURGBP is moving as expected! More upside in view!
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