Good morning Forex Kings,
A very busy week coming up in the economic calendar, we will be fairly active this week!
On the UK side, the GBP has been getting pounded with macro data unsupportive to say the least. The market is currently pricing in an interest rate cut from the BoE. The EUR has been extremely over sold against a number of major currencies. The ECB will announce their interest rate decision this week with everything expected to remain on hold.
We have been doing a lot of work with Elliott wave analysis which is one of the hardest, and most successful tools in predicting the direction of a trend.
We are looking at a potential EURGBPfor the
Waves 2 and 4 are always corrective,
Wave 1 is usually the longest
Wave 3 cannot be the shortest among waves 1,3 and 5.
Waves 1 and 4 overlap
Leading diagonals occur in the position of the first wave of an impulse or wave A of a correction.
The EURGBP has met all of the criteria above for the time being.
We are now looking to buy on a pull back to form wave 5b
Trade Setup: BUY market order – Stop loss 0.8480, take profit set at 0.8600
Stop loss: 50 PIPS
Take profit: 70 PIPS