Based on technical analysis EUR/GBP Elliott Wave Forecast, 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 Zig Zag Elliott wave pattern and traders should look for a sell trade. So, all those Forex traders who have followed my Elliott wave forecast have made the right decision as price has descended.
Strong key resistance level is present at 0.9386 price area which is termination point of Bullish corrective wave B leg. In my judgment, price action in EUR/GBP currency pair is now going to move sideways. Next expect further decline in price action to complete a Bullish wave pattern – wave C. So, market is going to remain bearish on a short term basis. Next, expects a short term bottom in price action as well. Based on Elliott wave forecast, current Bearish trend is part of a Bearish corrective Elliott wave pattern, wave 4 leg in higher time frame.
Currently, Bullish wave C leg looks in-complete. So, a good idea is to look for a possible sell trading chance the down trend around 0.8888 price area. However; if price of EUR/GBP currency pair breaks above 0.9386 vital resistance level then down trend is going to end. In such a market scenario, it would be best not to trade Forex market and re-do 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 is printing Bearish corrective wave 4 leg which is going to complete soon. So, now expect price action in EUR/GBP currency pair to drop more to complete corrective wave pattern. Next, price is going to prints a medium term bottom as well and rise up to print Bullish Impulse wave 5. Within Bullish Impulse Elliott wave pattern, all sub-waves must sub-divides into 5, 3, 5,3 and 5 waves pattern.
The following Elliott Wave Bullish Impulse wave pattern diagram shows us a completed Bullish Impulse wave pattern within the frame work of Elliott wave principle.
The Bullish Impulse 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 higher swing highs and higher swing lows. Bullish Impulse Elliott wave pattern in an up trending market could be seen inside the above image. The figure shows what a Bullish Impulse Elliott wave pattern looks like. If a trader knows what a Bullish Impulse Wave 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 Bullish Impulse wave consists of total five waves. Three bullish legs in the favour of an up trend. And two bearish corrective Elliott wave patterns, against the upward market trend. We use numbers to label impulse wave 1, 2, 3, 4 and 5. Inside wave 2 and 4, we use English alphabets to label corrective wave structures. Please take a note that Bullish Impulse Wave pattern is a motive Elliott wave pattern. It appears at a trending market environment and moves in the favour of larger upward market trend.
Based on my EUR/GBP using Elliott Wave in daily chart, we have got an in-complete bearish wave 4 leg. So, market is going to first drop to complete the wave 4 and then rise up to prints bullish Impulse wave 5 pattern. However; it is possible if price breaks below green colour support line then forecast will become in-valid. Now, price action is probably going to move sideways. Next, expects a decline in market to complete a Bearish Zig Zag corrective wave 4 leg.
To me; in four hours chart of EUR/GBP currency pair the bearish waves C leg which is part of a higher degree wave 4 corrective pattern in daily chart is just a bearish leg in an up trend. As mentioned above as Bearish Zig Zag leg inside a 4 hours chart.
Strong key support level is present at 0.8595 price area in EUR/GBP daily chart. So, I expect market to first move sideways for next coming trading days and then may be start moving up. So, in my opinion market is going to remain bullish overall. And on a medium to long term basis, expects a sideways to bullish leg in market. Next, market is probably going to resume the Bullish 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 0.8595 support area in daily time frame to keep the up trend alive. A clear bearish break down in price action below 0.8595 support area will end an up trend. It will also fail bullish Elliott Wave Weekly Forecast as well. 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 Forecast the trend is up in daily chart. A good idea is to look for a buy trade around 0.8922 price area. As price action is going to rise up towards 0.9095. But a clear bearish break down in price action below 0.8595 vital support area will end up trend. On a medium term basis, it is a bearish trend in EUR/GBP 4 hours time frame.
A good idea is to take a sell trade around 0.8888 price level. Next, price is probably going to drop lower towards 0.8750 price level. However; if price of EUR/GBP currency pair breaks above 0.9386 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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