Elliott Wave Analysis on EURUSD and GBPUSD

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EURUSD

EURUSD is trading nicely lower for the last few weeks and it has now at the shape of an impulsive decline underway if we consider the sharp fall yesterday to 1.1200 area which was our minimum downside objective. But this decline looks strong so we expect more weakness within the red wave 3) headed to 1.1000 area, while the price trades beneath the upper channel resistance line and 1.1348 swing high.

EURUSD, 4H

EURUSD 4 (5)

GBPUSD

GBPUSD is trading to the upside in the last 48 hours from 1.4330 so it appears that the corrective wave two is still underway. An updated count shows the idea of a flat in progress after a recent small break beneath red wave 1), which is usually the case in wave B of a flat pattern. That said, the price is probably in wave C that can be looking for resistance then around 1.4550-1.4600 area this week. We remain bearish on the cable as long as market trades beneath 1.4769 high, where the pair might accomplished a big contra-trend move visible on higher time frames.

GBPUSD, 4H

GBPUSD 4 (2)

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About Author

Gregor Horvat is  based in Slovenia (Central Europe) and has been in Forex market since 2003. He is technical analyst and individual trader who also provide a lot of articles and trade plans based on the Fibonacci and Elliot Wave principle. He was working for Capital Forex Group and TheLFB.com. His feature articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, oil, gold, and the U.S. stock market. Gregor Horvat is also founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). EWP provides a method for identifying price points at which a market is most likely to turn. Knowing the probable swing and reversal points provides confirmation of where investors could enter and exit positions for the highest probability of success. Gregor Horvat Chief  Technical Strategist Website:  For more analysis visit our website and Try our services absolutely free for 7-days! http://www.ew-forecast.com/service//

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