Predictive/forecasting model signals a nominal target attainment at TG-Lo = 0.73344, implying a high-probability reversal at this precise level. This target was defined today - There was no prior target defined at this level, so not a "Target Hit" announcement.
The background geometry supporting this view is a 3-point line-up of a quasi-WW - Since the 1-3 and 2-4 Line are not strictly convergent, this pattern falls under one I have priorly defined as a alternate WW, or AWW - Geometric target rests at the level of AWW's point-4, or 0.87683.
The overall gist of price action is that of a consolidation with multiple internal ZZ formations. This carries a high adherence to Fibonacci contractions of 0.618 and expansion of 1.618.
Looking at the contraction range, the 0.618 comes into close alignment with above geometric Point-4 of AWW, here at 0.88533 vs. 0.87683.
Looking at the RSI-14, its historical, albeit taut line up at 17.45 with a prior nadir reached in mid July 2012 is calling for a probable rallying from here, adding further credence to the geometry and predictive model biases.
On a comparative basis with other pairs or relative to the Dollar index itself, recent analyses are expecting further advances in the $EUR and $GBP relative to the $USD, and decline in $GBP relative to $AUD. Therefore, the expression of $EURGBP is net , favoring $EUR over $GBP - See links below for recent analyses on $GBPAUD as well as expectation of a decline in $DXY and $USDollar:
Convergence of Fibs, market geos in support of the predictive/forecasting model supports a rallying from this current technical base. Insight into related currencies also point to intrinsic forces in favor of a $EUR outperformance relative to $GBP.
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$EURGBP: Smaller TF reveals potential WW completion at 5-prime near 0.73020; Still Bullish:
@tradingview $EUR $GBP
Now that price rolled all the way to a R/S level (see minor structure to the left of the price field), a support at this level has likely been reached.
In terms of geometric correspondence, the most important yet discreet event, is that of a perfect alignment with the background geometry's Point-4 with its 0.618-Fibonacci potential retracement level - See chart below:
In terms of individual currency behavior, look for strengthening in $EUR or weakening $GBP data, or both, which may carry this $EUR vs. $GBP relative strength to higher highs from here.
$EURGBP continues to rally significantly; Interim retracement is expected:
@tradingview $EUR $GBP #ECB #BOE
$EURGBP nears minor resistance @ 0.74031; moderate at 0.74972 nodule:
@tradingview $EUR $GBP $USD #ECB #BOE #forex