Elliott Wave Analysis: EURGBP Trading in a Probable Three

EURGBP made a nice continuation lower from wave iv correction. As we can see on the 4h chart, blue wave iv correction seems to have finished its consolidation at the 0.8578 mark, from where a nice drop towards the 423.6 Fibonacci ratio occurred. This drop represents the final wave v, with a contracting structure, which gave us an idea about an ending diagonal. As we know an ending diagonal is a powerful reversal pattern, which can, after its completion, make a strong reversal higher, in many cases towards the starting point of the pattern as in our case towards the 0.8578 level.

As explained above, an ending diagonal is a reversal pattern and as we see on the updated chart we can see that the price jumped higher overnight, probably into the start of a probable three wave corrective move or a possible new impulse, that could in weeks ahead take the price higher. For our minimum expectations, we believe the price will continue to the 0.8596 level.

EURGBP, 4h

Ending Diagonal Pattern:

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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