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5 Feb 2015
EUR/GBP cycles remain bearish – ElliottWave Forecast
FXStreet (Barcelona) - Daud Bhatti of ElliottWave-Forecast, uses Elliott Wave analysis and comments that GBP/USD cycles remain bearish, expecting the pair to resume lower to carve new lows below 0.7402.
Key Quotes
“Our mid-term Elliott Wave cycles remain firmly bearish in EURGBP.”
“Pair tested the inflection area between 0.7591 – 0.7618, got rejected and turned lower as expected. Cycle from the lows is over so connector wave (X) is thought to be in place at 0.7591.”
“Decline from this high is so far in 3 waves but there is enough extension in 3rd swing that we could see another low to complete 5 waves down from the high.”
“Once Elliott wave cycle from the high is over, we would expect a bounce in wave (b) to correct the decline from 0.7592 high in 3, 7 or 11 swings and decline should then resume for new lows below 0.7402 as per the primary Elliott wave view.”
“Price above 0.7529 would leave the decline from 0.7592 peak in 3 waves and pair could then test 0.7538 – 0.7551 area before it turned lower again.”
“We don’t like buying the pair and favour the short side after bounces in 3, 7 or 11 swings against 0.7591 high in the first degree. If this level breaks, that would allow for a larger (W)-(X)-(Y) correction and we should see sellers again at equal legs – 1.236 ext area.”
Key Quotes
“Our mid-term Elliott Wave cycles remain firmly bearish in EURGBP.”
“Pair tested the inflection area between 0.7591 – 0.7618, got rejected and turned lower as expected. Cycle from the lows is over so connector wave (X) is thought to be in place at 0.7591.”
“Decline from this high is so far in 3 waves but there is enough extension in 3rd swing that we could see another low to complete 5 waves down from the high.”
“Once Elliott wave cycle from the high is over, we would expect a bounce in wave (b) to correct the decline from 0.7592 high in 3, 7 or 11 swings and decline should then resume for new lows below 0.7402 as per the primary Elliott wave view.”
“Price above 0.7529 would leave the decline from 0.7592 peak in 3 waves and pair could then test 0.7538 – 0.7551 area before it turned lower again.”
“We don’t like buying the pair and favour the short side after bounces in 3, 7 or 11 swings against 0.7591 high in the first degree. If this level breaks, that would allow for a larger (W)-(X)-(Y) correction and we should see sellers again at equal legs – 1.236 ext area.”