EURGBP Elliottwave Techincal Analysis: When will downtrend resume?
Wave Count

EURGBP Elliottwave Techincal Analysis: When will downtrend resume?

31 December 2015, 04:42
hoagtrading
hoagtrading
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Talking Points:

  • EURGBP Technical Strategy: Turning Bearish
  • Elliottwave Count: We are  considering  correction over

Current price suggest that correction will be completed anytime from now. We have many possible scenario but all of them pointing to  down trend and suggest current move is corrective and will be loosing its momentum soon. 


Scenario 1: Running Flat Correction (Primary Count)

In This scenario, we might see downtrend resume from current level. As we are seeing weekly trendline resistance and can count five wave under wave (c). This is most preferred scenario. However, in textbook "Running Flat" considered a very rare and suggest not to consider as primary count. But with current price  action, it's good to consider as exception and giving high probability percentage to this count.


Scenario 2: FLAT CORRECTION

With this scenario, we can see another leg up towards .7500 area before we mark correction complete and look for trade entry. This is classic pattern, and considering month end  flow an monthly candle, this also has high  probability percentage. We have this month end bullish candle, and see next month start some what higher and retraced it's move. 


Scenario 3: EXPANDED FLAT CORRECTION

In this scenario, once trendline breakout  happen, buyer will jump into buying this pair and possibly stopped out later in next month. However, trendline breakout with current price and also, keep momentum for buying is very unlikely with GBP fundamental strength and ongoing EURO Zone economical weekness


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