CXJV
Long

EUR/GBP SIMPLE ELLIOTT WAVES

FX:EURGBP   Euro Fx/British Pound
EUR/GBP             price made a bearish move to the mental post-brexit barrier and strong 1D support level .
We are currently following a comfortable Elliott-Wave pattern hitting A.B,C,D waiting on E

Daily Bearish hammer formed at 1D support level (0.833) which is a strong indication of a reversal.

Heiken Ashi candlesticks should turn Blue ( Bullish ) tomorrow if price follows reversal candle, setting price up for a bullish move towards 1D resistance

SL: Below 1D support
TP1: 0.86
TP2: 0.87

RISK/REWARD: 5.23
Hi Thanks for the idea. While I am temporarily bullish on the eurgbp I believe there is more downside on the long run. Again I would not put my (A) where you put it. If a triangle is forming the (A) would be on the first retracement - where the (B) is right now. Of course I may be wrong
Reply
CXJV Olu
Thanks for the tip, I wasn't sure if the waves start from the first swing point after a previous pattern or breakout. (E.g Brexit Bullish candle 24/06)
Reply
Olu CXJV
No problem C. Check out an idea about eurgbp based on the weekly chart I put out last week. I closed the trade today because I saw the hammer on the daily. Once the long term idea is in place the challenge is to fit all the smaller timeframes counts inside the big picture. . Well see what the market does...
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CXJV Olu
I see what you mean with more downside possibly coming.

Where do you stand with price ranging during the uncertain UK economy and the added stress of cracks forming through the EU? Do you personally feel we may break from it soon due to great UK data over the past weeks or stay stagnate until stronger deals and relationships are forged from the UK around the world to give a better picture of how the Uk is going to rebuild itself?
Reply
Olu CXJV
It is all in the air at the moment with all the fundamentals. Which is why I resorted to Technical analysis. Even though we have had the BREXIT vote action is still on hold - no article 50 has been declared. So everything is still as they were before the vote except the 10% devaluation of the GBP. Now if there is any problem with the euro the focus will change from the GBP to the Euro and eurgbp will tank.

Either way it appears we have a complete 5 wave up move in the eurgbp on the weekly so a retracement is a reasonable expectation which we have had (or still having right now)
We have has 3 weeks of downside in the eurgbp and price put ina hammer right at support so there is a possibility of some retracement before the next downside (basis the weekly idea)

Sorry about the wordy reply - just thinking aloud here
Reply
CXJV Olu
The wordier the better!! Gives more to think about and base analysis off.

If your concept falls to plan then a head & shoulder pattern would emerge very well onto the 1D chart, this would kick start your 3rd wave pattern.

I will look out for that, Thank you for your insight.
Reply
Olu CXJV
You are right. As you know a H&S pattern that plays out is usually a 3-4-5-a-b-c pattern. So it is still possible
Reply
CXJV Olu
I need to further study all the wave theories as the psychology is noticeable everywhere on any given chart. Its weird to see it so often. I have a basic understanding of what drives each wave and the reason behind it.

Grand Supercycle
Supercycle
Cycle
Primary
Intermediate
Minor
Minute
Minuette
Sub-Minuette

Would like to know all of these and how they plan out, I suppose thats the next step for me!
Reply
Olu CXJV
I need to study more too. I do not have the skill to go down to the minuette levels. But once I get a good count on the higher timeframes like in this case the eurgbp I can step down to the daily and 4hr chart and look further. As you get to the much lower timeframes you now get into the realm of the WXYs etc and it gives me a lot of headache. Hence I tend not to go lower than the 4hr in my trading.
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