Elliott Wave Analysis: GBPUSD and EURUSD

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GBP is the strongest this week, now again breaking to a new high against the USD, so the market participants are becoming increasingly bullish on this currency, but from a technical perspective we believe they should be very careful. The reason is an EW structure which shows that the market went out of a triangle this week, therefore it’s in the final stages of a higher degree structure so the upside can be limited, especially if we also consider that we can count five sub-waves up in wave 5 of 3). We see some nice Fib. resistance near 1.2950-1.2300. A reversal into a new correction can be seen from the highlighted area.

GBPUSD, 1H

On the EURUSD pair, the situation is not as clear since the market turned down in three waves from the highs and as market is trapped between 1.0930 and 1.0850 it’s unclear if the decline was a correction or a start of a bearish movement that will fill the gap. Therefore, we suggest being careful here until we get one of the clear breakouts; a move above 1.0930 can bring 1.1000 psycho level while a decline with a daily close below 1.0850 can cause a gap-fill.

EURUSD, 1H

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About Author

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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