FX.co ★ Elliott wave analysis of EUR/GBP for July 21, 2020

EUR/GBP broke below support at 0.9063 indicating that the correction from the 0.9113 wasn't completed yet. The correction from 0.9113 has turned into an expanding flat correction where the peak of wave b is above the start of wave a and finally the low of wave c is below the ending point of wave a. This is a difficult correction but it gives a clue of what is going to happen next and that is an extended rally in red wave iii/. This next impulsive should not be less than 161.8% the length of red wave i/, which means a rally towards at least 0.9298.

The ideal completion point for wave c is here at 0.9029 and a break above minor resistance at 0.9055 will indicate that a low is in place and red wave iii/ is unfolding.

R3: 0.9140

R2: 0.9079

R1: 0.9055

Pivot: 0.9044

S1: 0.9029

S2: 0.9001

S3: 0.8986

Trading recommendation:

We are long EUR from 0.8646 and we have our stop placed at 0.9000. If our stop is hit, then we will re-buy EUR upon a break above 0.9055.