Right now, EURGBP currency pair is navigating a corrective setback into major uptrend according to Elliott Wave Analysis. The resulting analysis, released publicly on July 31, shows a promising trend. The duo is now in the process of completing a three-wave abc correction in what traders refer to as wave B. EURGBP still looking like a short, but nearing big support around 0.8600. Traders around the world are glued to its motion, looking for the next great trading opportunity.
Indeed, today’s EURGBP technical analysis finds the cross approaching key support at the 0.8600 mark. This level serves as a key make-or-break level for traders. During the recent PAFA CARES conference, financial experts predicted this pair to hit that level shortly. Or instead, it drops just under as wave “c” of the abc correction starts forming. Such support is essential. This level of support is the bare minimum. Changes in momentum frequently happen at these points, providing us with deep clues as to the future direction of the currency pair.
Elliott Wave Theory teaches that wave B is a corrective phase, not an impulsive one. This entire phase consists of three smaller waves, which are numbered a, b, and c. Our analysis indicates that the three-wave abc correction will be coming to an end very soon. Once that occurs, EURGBP is poised to start wave C, which should send it skyrocketing. This possible continuation higher bodes very well for traders hoping to ride what is expected to be a big bullish trend.
In this regard, technical analysis has been used to do a fine-tooth comb analysis of EURGBP’s micro movement on a 4-hour timeframe. This level of detail is critical because it allows traders to take information from price action and market behavior and use it to make trade decisions. The chart accompanying this analysis should help the reader to develop an intuitive feel for what the current pair dynamics are like.
With the 0.8600 support level approaching, traders should exercise caution. How momentum changes collude with price action here will be determining factor on what happens next with EURGBP. Should the pair manage to stay above this support level, it may indicate the beginning of wave C. We hope to build on these movement advances to secure bigger wins.