I promised Diversanta that I would take a look at EUR/GBP, so here we go.
First let's take a look at the rally from 0.5683 to 0.9803. This was an odd rally. wave 1 was a leading diagonal followed by a wave 3 that was only slightly longer than wave 1 and wave 4 was a four year triangle and finally wave 5 which became the extended wave was 2 times longer than wave 1 through wave 3.
The following correction has been equally odd. Every time we expected it to be over we took a new dive, but as it can be seen on the chart, it was a pretty perfect triple zig-zag correction. It corrected 61.8% of wave 5 and 50% of the hole rally from 0.5683 to 0.9803 and we have now begun a new rally higher.
Looking at this new rally we should see one more rally in wave 1 towards 0.9030 before we will have a correction back to 0.8393 as wave 2 and then wave 3 higher. What can we expect longer term? At least a rally back to the high at 0.9803 as we could see a way more complex correction from 0.9803 Building, but it will all depend on how the rally from 0.7763 develops. So for now look for a rally higher to 0.9030 followed by a correction Down to 0.8393 and the higher Again.
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