Elliott wave Analysis: EURGBP and GBPJPY

Intermediate

Hi traders,

EURGBP made a sharp rally recently, away from 0.865 level which was quite expected, as we were tracking final stages of a bigger corrective wave B). This recovery we now labelled as wave 1 of a bigger bullish rally, which looks to have found a top and resistance at the 0.894 level, from where corrective wave 2 is already taking price lower. Corrective wave 2 can take price towards the Fibonacci ratio of 38.2/61.8, from where a bullish recovery can follow.

EURGBP, 4h

4h EURGBP Chart Screenshot

GBPJPY made a three-wave drop from the 149.49 level and found some support at the Fibonacci ratio of 78.6. From there we can see price slowly turn higher, probably into wave 1) as part of a bigger wave C reversal. A minor five-wave rally and a break above the 146.31 bullish level would confirm a bullish continuation into wave C of a higher degree.

GBPJPY, 4h

4H GBPJPY Chart Screenshot

Elliot Wave Technical Analyst

Gregor Horvat is based in Slovenia and has been in the Forex market since 2003. He has been working for Capital Forex Group and TheLFB.com.

He is the owner of www.ew-forecast.com, which prov...continued

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