FX.co ★ EUR/GBP Elliott Wave Count for January 23, 2012

Market Overview
EUR/GBP has started this week by 12 pips lower, and is pushing to 0.8275, where this currency pair will find support and will start moving higher, at London Session start the euro – pound pair has broken 200EMA Resistance and pushed above 0.8315. Price is currently around 0.8328 and we expect to see the euro higher today

Important News
(EUR) Consumer Confidence
(GBP) MPC Member Posen Speaks

Support and Resistance
(S3)0.8251 (S2)0.8280 (S1)0.8298 (PP)0.8327 (R1)0.8356 (R2)0.8374 (R3)0.8403

Elliott Wave Analysis for EUR/GBP
EUR/GBP finishes corrective wave A,B,C of the Bigger Wave b at 0.8274. According to our wave rules and assuming that wave c of the bigger wave A will be equal with wave a, we can project our target with Fibonacci extension (0.8238-0.8378-08250) to 0.8390.

Trading Forecast
Based on Elliott Wave Rules we can expect the trend to go higher today. That is why we can come to conclusion that we should open Long position at 0.8336 with Stop Loss at 0.8300 and Take Profit at 0.8390.