EURGBP Hot Spot -- On top of several wave relationships

EURGBP appears to be finishing a move lower as the pair plows into a cluster of wave relationships. It appears to be close to finishing wave 4 (w-x-y). That wave count suggests a 5 wave move higher that could reach .8150.

When you draw a trend line connecting the end of wave 1 & 3, then duplicate that line to the end of wave 2 to obtain an approximate area for wave 4.

Also, if you draw a trend channel within circle wave 'y' (grey trend line), the equal wave measurement appears near 7560 which was tagged Wednesday morning.

EURGBP may bounce around here a little, but the point is this move lower appears mature. The top of wave 1 is the risk to the trade, so a stop loss could be placed near .7490.

Couple this idea with the EURUSD post from earlier this week which also appears to have some bullish potential.

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There are a lot of Elliott Wave relationships taking place on this pair. I welcome your questions on EW.

Best of luck!

Comment:

EURGBP is approaching the grey trend line. ECB hits the wires tomorrow morning. The move from May 30 looks impulsive. Therefore, the grey trend line may provide temporary resistance, but considering a buy the dip strategy.

Comment:

Top side attack on the trend channel. This 7750 low from today is another hot spot to define for bulls. Positive risk to reward ratio from near current levels.