Elliott wave analysis of EUR/GBP - Short term count

EUR/GBP

The decline from 0.8400 became a more complex double zig-zag combination. However, we finally have seen a low for wave 2 at 0.8193. I will now be looking for minor support at 0.8216 to protect the downside for a break above resistance at 0.8247 and more importantly a break above resistance at 0.8260 and 0.8310 confirming a rally towards at least 0.8588 and possibly even higher.

Elliott wave analysis of EUR/GBP - Short term count

EUR/GBP

With the break below support at 0.8243 we knew that a little more downside action towards 0.8227 was needed. With a low at 0.8228 just 1 pip above the ideal corrective target. The rally since the 0.8228 low does look impulsive, however, we still need one more rally before we have the first small five wave rally in place. Short term I will look for support at 0.8264 to protect the downside for the final rally higher towards 0.8291 and maybe even 0.8305 to end the first small wave in wave 3 higher towards at least 0.8474 and more likely towards 0.8626.

Elliott wave analysis of EUR/GBP - Short term count

EUR/GBP

We did see a break above the reflex point at 0.8277 but failed to see a follow-through, which has evolved into extended downside pressure and we are now sitting at my second downside target at 0.8227. We could still see a small spike below this target, but the downside potential should be very limited from here. Short term I would like to see a break above minor resistance at 0.8249 and more importantly a break above resistance at 0.8285 as confirmation that wave 2 finally is in place and wave 3 higher towards at least 0.8473.

Elliott wave analysis of EUR/GBP - Short term count

EUR/GBP

The small red wave ii correction went a Little lower than the expected 0.8251 (the low came in at 0.8246), but important support at 0.8243 has held firm. I'm looking for a break above the small reflex point at 0.8277 as the first good indication that red wave ii did end at 0.8246 and that the powerful red wave iii higher towards 0.8365 is unfolding.

The Elliott Wave Principle only has three rules and no. 1 is that wave two can't break below the starting point of wave one. This is true for all possible degrees of trend. That Means red wave ii can't break below 0.8243 otherwise the above count is wrong.

It also offers the prefect entry point for a new position. As red wave ii isn't allowed to break the starting point of red wave i we should not see a break below 0.8243. So buying EUR here close to 0.8269 or more safely upon a break above 0.8277 will leave you with a potential low risk (stop at 0.8242) high reward trade.
Looking at the medium term Count we have the starting point for wave 1 at 0.8154 and ideally wave 2 is in place at 0.8243 and wave 3 should be in its very early part. For a medium term trade this also represents a low risk (stop at 0.8153) high reward trade. The first possible target for wave 3 is at 0.8489. 

Elliott wave analysis of EUR/GBP - Short term count

EUR/GBP

We did see a slight move above the top of red wave i at 0.8310, which made a new high at 0.8315, but the following decline has been very deep retracing 100% of the rally. A 100% retracement in wave two is allowed, so for now I will keep my bullish count looking for the powerful wave iii higher soon. However a break below 0.8256 will indicate that an expanded flat red wave ii is unfolding calling for a move closer to 0.8251 before we can expect the next impulsive rally higher towards 0.8365 and ideally above 0.8400 in wave i of 3.

Elliott wave analysis of EUR/GBP - Short term count

EUR/GBP

I have changed my short term count slightly, instead of a series of waves one's and two's I think the above count, showing a expanded leading diagonal as minor red wave i is more appropriate. we have likely just ended minor red wave ii at 0.8256 and I will be looking for acceleration higher in red wave iii towards 0.8365 soon.

Ideally we will see wave i of 3 break slightly above the top of wave 1 at 0.8400 before wave ii of 3 kicks in, but for now we should stay focused towards the upside for a rally towards 0.8365. 

Elliott wave analysis of EUR/GBP - Short term count

EUR/GBP

I'm still looking for a powerful wave iii rally higher towards at least 0.8586 as long as support at 0.8249 protects the downside. A break below 0.8249 will delay the expected rally for a Little more downside pressure towards 0.8226, but no matter the downside potential is very limited from here and our focus should towards the upside for a break above 0.8297 and more importantly a break above 0.8331 that confirms wave iii higher is developing.

Elliott wave analysis of EUR/GBP - Short term count

 

 

EUR/GBP

As we saw a break below 0.8286 we knew that a deeper correction towards 0.8268 was developing. We even saw a slightly deeper correction than that as we have seen a test of 0.8243 as the low. However the overall call for renewed upside pressure once this correction from 0.8400 was over is still the dominant picture and I will now be looking for a break above resistance at 0.8331 as the first good indication that wave 3 or blue wave iii higher is developing towards 0.8641 and maybe even higher. During this next impulsive rally I would like to see the base channel resistance line near 0.8426 broken clearly to confirm extension in wave 3 higher.

Elliott wave analysis of EUR/GBP - Short term count

EUR/GBP

I still think the best count is that a flat correction as wave iv is unfolding and if this is the case we should soon see wave c of iv lower towards 0.8316 before the final Fifth wave higher towards at least 0.8415 and likely even higher towards 0.8473 to end wave 1 of one higher degree.
Short term a break below 0.8378 is needed to confirm downside pressure in wave c.