Our Analysis on EURGBP two weeks earlier – targets reached in the meantime – 27.03.2014March 27, 2014
Below is our two weeks old analysis on EURGBP pair, with the reasoning for the trade and recommendation for our members.
Above you can see what the actual price did.
Capital Properties FX
A combo analysis on the eurgbp cross and while we are having an active trade there, a short one, I would like to place pendings to sell some more.
Terminal impulsive move there and the wave to the upside seems to be a wave a purple that is part either of a contracting triangle or a flat.
In both cases, we have the following things that support the downside:
- if wave a purple (visible on both the daily and hourly chart here) is leg of a contracting triangle, it should be corrective - well, it is a zigzag, but the second five waves structure there on the 1h chart is a terminal impulsive move and this one should be completely retraced, hence our first target there;
- if wave a purple is a flat, then in a flat wave b is mandatory to retrace ore than 61.8% when compared with the previous wave a (this one). Conclusion? Still the downside to come.
From both situations above, I favor the contracting triangle one as on a bigger degree, visible on the daily chart, it seems that price is forming a complex double three running pattern for the second wave green.
What to do? Well, I don't want to be long. So shorting some more.
Levels on the chart above and the big picture on the chart below.
Capital Properties FX Team