My projected target zone for EURGBP was 0.975-0.80 as posted in previous analyses. However price is finding resistance and I expect either a new impulse lower breaking below 0.6935 (previous low on daily time frame) or at least a three wave correction with wave C in progress.
Therefore I like to see a bearish break followed by a consolidation on lower time frames.
We saw a consolidation on lower time frames, (I used 1 hr time frame). However I believe this bearish move is part of only 1 wave and there should be a more significant correction follow once this wave is over. Then I expect a third leg lower. But we see strong corrections across the market so I'll place stop at break even and see whether I'll stay in the short until we see a break below 0.765.
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Comments
Marvin
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I'm in from .7809. When you say you're looking for consolidation of lesser degree, what do mean? Do you mean that it shouldn't be steep? Thanks and good luck.
TimStuyts
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An impulse has impulses of lesser degree within. I use a time frame for a potential set-up, let's say the 4 hour chart and then I'll be looking for 1 hour and 15 min time frame consolidations. Say we are in an impulse lower on 4 hr time frame, the 1 hour and 15 min time frame should help us show inner waves, that's what I call 'of lesser degree', this way you can enter a set-up of the daily time frame with a stop loss based on 15 min time frame in an ideal scenario. These are the trade set-ups I'm looking for to generate incredible Risk/Reward potential. The GBPUSD was the best example that I posted on Tradingview of the last few weeks.
Marvin
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Ok now I understand. Thanks mate.
Marvin
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Well we have the break but so far no consolidation. Perhaps it's starting now. Good spot Tim. Watching.
TimStuyts
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Yes I agree, the 0.78-0.782 zone is a good area to see the consolidation start. I expect at least another leg lower after that consolidation. However whether this will be top longer term I'm not so sure. It could be but I still favor a last extension higher to test 0.80. I expect this pair to starts its move lower (break below 0.69) when the 'Brexit' scenario is off the table. However in terms of structure we see this bullish momentum weaken and I don't expect it to break out of the daily bearish channel before we see another low. I'll update once we see a significant consolidation.