EUR/GBP ?? Ready for Bearish Wave C? ?

March 15, 2018

2 min read

Dear Traders,

The EUR/GBP created an even more extended correction than anticipated in my previous analysis.

Today’s post will provide an updated analysis of the most recent price action.

My previous EUR/GBP analysis made the case for a leading expanding diagonal that would have been the start of a bearish Wave C. However the diagonal pattern broke to the upside, which made it not into a diagonal but most likely a complex zigzag (see dark box in chart above) because it was followed by an impulse to the upside.

It means that the final wave Z of the corrective range, in which price has been stuck in since late 2017, has become even more complex. Price action since the high of Mar 7 could be considered impulsive, building a series of wave 1-2s, which could finally herald the start of bearish wave c.

But there are still question marks in regards to the wave structure of turquoise wave Z. It no doubt is a complex double or triple zigzag, but there is the possibility that we require yet another impulsive swing to the upside. before it is finally complete. Proof will come soon because the current downward swing would require to pickup strong momentum quickly if wave Z is indeed complete at the Mar 7 high.

Targets for the bearish wave C would be below 0.8680 (the bottom of the range), and possibly 0.86 and 0.8550 which would make for an evenly sized Wave C vs A.

All the best along your trading journey

Hubert