Dear Traders,
The EUR/GBP has provided some more confirmation of the bearish scenario we highlighted in the previous analysis of this pair.
Today’s analysis will give an update on the latest price structure, what to expect next, and new potential trade setups.
Price has confirmed bearish momentum since our last analysis and produced a significant drop yesterday. But so far it appears to be moving downwards via 3-wave structures since the Feb 14 high, (as opposed to a series of 5-wave impulses). This strongly points towards the scenario of an expanding leading diagonal (expanding wedge) as wave 1 of a new bearish trend (refer to white lines of the 4 hour chart above).
The 1-hour chart below shows the 3-wave moves, since the last major high, in more detail.
A strong break below 0.8790 would most likely invalidate the wedge scenario and suggest that price will continue to move down swiftly without much hesitation.
In our view, the next good trade setup would be to sell at the start of the projected Wave 5 of the expanding wedge. Here is what we are looking for:
All the best along your trading Journey
Hubert
.
Leave a Reply