Elliott wave analysis of EUR/GBP for March 16, 2020

Elliott wave analysis of EUR/GBP for March 16, 2020

EUR/GBP has continued high through resistance at 0.8939 for a move closer to the next upside target-zone between 0.9101 – 0.9141. We expect a solid top to be set in this target-zone for renewed downside pressure towards our long-term target near 0.7500. Short-term support is seen at 0.8939, which is expected to protect the downside for the final pop closer to the 0.9101 – 0.9141 target-zone. Only a direct break below the 0.8939 support will indicate that a top already is in place, while a break below support at 0.8843 will confirm wave B has peaked and wave C is unfolding.

R3: 0.9141

R2: 0.9101

R1: 0.9055

Pivot: 0.8975

S1: 0.8939

S2: 0.8890

S3: 0.8843

Trading recommendation:

Our stop at 0.8950 was hit for a loss of 50 pips. We will re-sell EUR at 0.9085 or upon a break below 0.8939.

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