Watch 1.2450 on EUR/USD; 1.6020 on GBP/USD on the downside

Watch 1.2450 on EUR/USD; 1.6020 on GBP/USD on the

Markets are very slow ahead of ECB and BoE. We see both EUR and GBP slightly moving up, away from yesterday’s lows but the recovery is not in five waves yet, so therefore the move can be part of a downtrend. Keep in mind that the larger trend is still down on both pairs.

On EURUSD we see a nice five wave decline from 1.2576 which is an impulse so we will continue to look down especially as the rally from the lows already has a corrective look because of three waves. Ideally the market will break beneath 1.2450 today and possibly accelerate much lower. The invalidation level is at 1.2576; as long this one holds, the trend is down.

EURUSD 30min Elliott Wave Analysis

On GBPUSD, the structure is slightly different but still can be bearish for the pair because of a five wave fall from 1.6180. Ideally the pair is now in a three wave (a)-(b)-(c) rally that can stop at the 1.6020/40 resistance zone.

GBPUSD 1h Elliott Wave Analysis

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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