EURGBP long - start of possible 5 wave pattern

11 juin 2016

EURGBP broke the previous highs indicated by the rectangular box through a 5 wave pattern that also completed the abc formation as you can see from the labels. The break of the highs indicates that we can see a move higher. From a higher TF context, the abc movement was just a corrective structure to the impulse from the .72500 levels. Next logical target since breaking the previous highs would be found at the 38.2% FIB level at around .823.

After forming the c of the previous 5 wave structure, I think we established the 1 and 2 for the next 5 wave structure, so I FIBed ahead and the levels seem to work out correctly with the current structure. Looking to long on a retrace to the 50% FIB level and target the previous highs at around .8100, but ultimately targeting the .823 level..

14 juin 2016

Note

Failure to break below .79063 will setup for another move up to create the 7th wave. If this happens then we should expect 9 waves, possibly 13 waves to the upside. Targeting at least .8000 as first target.

17 juin 2016

Note

Price rallied and made a higher high indicating more movement higher. However, it looks like it's going to fall back before the next move. Entry at .78422 still looks good.

21 juin 2016

Note

We saw a very deep retracement after the 5th wave. Much more than expected, but we see prices respecting the levels here. I went long as price touched the 78.6% retracement and with the touch of the trendline. We should see nothing but up from here to finish off the C wave of the larger TF.