EURGBP - correction is in progress. Then down to 0.64 or lower!

FX:EURGBP   Euro Fx/British Pound
In this post I want to analyze the wave structure of EURGBP             of the last year so to get a feeling of the relative strength of both currencies in order to understand which one will have a larger downside potential against USD.

It seems that we are working through the corrective wave 4 of the descending impulse. The correction may take some time and its structure is hard to know for sure. One thing is certain: we are in a region of congestion which is choppy, overlapping and is contained within the parallel lines. This means that this region will be more than fully retraced at some point and we will continue moving in the direction set by the previous impulse (i.e. down).

The downward movement will be our wave 5, but this will not end the decline. I do believe the decline was ignited by a