Elliott wave analysis of EUR/GBP for April 24 - 2020

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The corrective decline from 0.8863 has been deeper than we first expected. However, second waves often are very deep. They may correct 99.99% of the first impulsive wave which we have counted the rally from 0.8675 to 0.8863.

We are looking for a break above the minor resistance-line currently at 0.8722 as the first good indication that wave ii/ has completed and wave iii/ is in motion for a clear break above 0.8863 towards at least 0.9063.

A break above resistance at 0.8740 will confirm that wave ii/ is completed.

Only an unexpected break back below 0.8675 will cancel off our former target at 0.8621 before a long-term low occurs.

R3: 0.8863

R2: 0.8779

R1: 0.8740

Pivot: 0.8724

S1: 0.8709

S2: 0.8675

S3: 0.8621

Trading recommendation:

We are long EUR from 0.8765 with our stop placed at 0.8670.

The material has been provided by InstaForex Company - www.instaforex.com