Based on technical analysis the bearish trend is present in EUR/GBP currency pair, 4 hours time frame based on EUR/GBP Elliott Wave Weekly Forecast. As I have forecasted few hours ago, the price of EUR/GBP pair is going to drop now to prints a Bearish corrective Zig Zag Elliott wave pattern and traders should look for a sell trade. So, all those Forex traders who have followed my Elliott wave analysis have made the right decision as price has descended.
Strong key resistance level is present at 0.9147 price area which is the termination point of Bullish corrective wave b leg. In my judgment, price action in EUR/GBP currency pair is now falling down to prints a bearish impulse wave c which is going to complete the Bearish Zig Zag pattern. So, market is going to remain bearish on a short term basis. Next, expects a bottom in price action as well. Based on Elliott wave forecast, the current Bearish trend is part of a Bearish corrective Elliott Wave pattern, wave 4 leg in higher time frame which is going to complete Bearish Zig Zag correction.
Currently; Bearish Impulse Elliott wave pattern wave c looks in-complete. So, a good idea is to look for a possible sell trading chance to join the down around 0.8952 price area. However; if the price of EUR/GBP currency pair breaks above 0.9147 vital resistance level then down trend is going to end. In such a market scenario, it would be best not to trade the Forex market and re-do the EUR/GBP Elliott wave analysis in four hours chart.
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Now, at this point; I must acknowledge that the trend is Bullish in higher time frame of EUR/GBP currency pair.
Below is the daily chart of EUR/GBP pair with my Elliott wave forecast which shows us a big picture and a well started Bullish trend as well.
To me; price action has printed Bullish Impulse Wave 3 leg. Now, price action is falling down to complete the Bearish corrective wave 4 Zig Zag leg. So, now market is falling down on a short term basis to complete the corrective Bearish Zig Zag wave 4 leg. The Bearish Zig Zag wave 4 leg is the last and final decline in price action and price action is going to prints a long term bottom after that. Within the Bearish Zig Zag corrective Elliott wave pattern, all sub-waves must sub-divides into 5, 3 and 5 waves pattern.
The following Elliott Wave Bearish Corrective pattern diagram shows us a completed Bearish corrective wave pattern within the frame work of Elliott wave principle.
The bearish Zig Zag wave pattern of the Elliott wave principle shows that how price action does not moves in a straight line fashion but in a series of lows (retracements) and highs (rises). Bearish Zig Zag Elliott wave pattern in a down trending market could be seen inside the above image. The figure shows what a Bearish Zig Zag Elliott wave pattern looks like. If a trader knows what a bearish Zig Zag pattern looks like, then it would become much easy for a currency trader to actually analyze the Forex charts and make a trading decision as well.
A Bearish Zig Zag consists of two Impulse Elliott wave patterns, joined by a B wave. We use A English alphabet to label first impulse Zig Zag wave leg and we use C English alphabet to label second Impulse Zig Zag wave leg. Please take a note that Bearish Zig Zag pattern is a corrective Elliott wave pattern which appears at a pull back in a main down market trend.
Based on my EUR/GBP technical analysis using Elliott Wave forecast in daily chart, we have got a in-complete Bearish corrective wave 4 leg and price action is now going to drop first and then rise up after that to prints bullish wave 5 impulse wave leg. However; it is possible if price breaks below green colour support line then Bullish forecast will become in-valid. Now, price action is probably going to move sideways to lower and then rise up more to prints a Bullish impulse wave 5 leg. To me; in four hours chart of EUR/GBP currency pair the Bearish impulse wave iii leg which is part of a higher degree wave 4 in daily chart is just a Bearish leg in an up trend leg as mentioned above as wave 4 corrective Bearish Zig Zag pattern inside a daily price chart.
Strong key support level is present at 0.8721 price area in EUR/GBP daily chart. So, I expect market to first move sideways for next coming trading days and then may be starts the rise. So, in my opinion market is going to remain Bullish overall and on a medium to long term basis, expects a Bullish leg in market. Next, market is probably going to resume the up trend after that in EUR/GBP currency pair, in daily chart.
Now, when an existing Bullish Elliott Wave Weekly Forecast in EUR/GBP is going to fail?
Well, the forecast is good for about next two weeks time and price should stays above 0.8721 support area in daily time frame to keep the up trend alive. A clear bearish break down in price action below 0.8721 support area will end the up trend and Bullish Elliott Wave Weekly Forecast; in such a market scenario, it would be best not to trade the market and re-analyze EUR/GBP daily chart.
Based on EUR/GBP Elliott Wave Weekly analysis the trend is up in daily chart and a good idea is to look for a buy trade around 0.9155 price area, as price action is going to rise up more towards 0.9388 but a clear bearish break down in price action below 0.8721 vital support area will end the up trend. On a medium term basis, it is a Bearish trend in EUR/GBP 4 hours time frame and a good idea is to take a sell trade around 0.8952 price level and price is probably going to drop lower towards 0.9014 price level. However; if the price of EUR/GBP currency pair breaks above; 0.9147 vital resistance level then Bearish trend is going to end. We recommend trading with these top-rated brokers when using our signals/analyses/forecasts as they handle your trades quicker and more efficiently with very low spreads and most of them have high trade execution rate.
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