Risk Trade Supports GBP/USD

Risk Trade Supports GBP/USD

Both Asian and European markets moved higher after positive sentiment seen at the close of the New York session on Friday. Despite a gap lower on Eur/Usd and Aud/usd at yesterdays open that appeared because of the “no real news from weekends EU summit”, pairs managed to recover on hopes that by Wednesday final decisions will be made.

From a technical perspective, the RISK appetite may easily continue in this week, after Weekly/Fridays close above 1230 mark on the S&P Futures. A running triangle is considered as finished, so more gains to come while 1192 holds. Based on this outlook, “Risk currencies”, such as Eur, Aud, Cad, Chf, and Gbp should also extend the gains, as corrective “B” patterns also show sign of a completion on the FX.

S&P Futures chart:

S&P Futures Chart Elliott Wave Analysis October 24 2011



Guest post by Gregor Horvat

Gbp/Usd Technical review:

As expected, cable moved into a new high in the past few sessions, with quite powerful break out of a triangle consolidation, which means that wave B is complete, and wave C underway. Wave B as we can see, found the lows around 1.5685, so as long this level holds, we will be looking up, towards 1.61, followed by even 1.63, where wave C equals to A!

GBP USD Elliott Wave Analysis October 24 2011

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Gregor Horvat

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!