Elliott wave analysis of EUR/GBP for April 6 - 2020

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The 61.8% corrective target of wave iii at 0.8747 protected the downside well as expected and prices bounced nicely of this support. Minor resistance at 0.8818 has been broken. It means that wave iv is completed and we are now looking for a break above 0.8867. It will indicate that wave iv has completed and wave v towards 0.9742 is developing.

in the short-term, we see support at 0.8809 and strong support at 0.8760 that ideally will protect the downside as the expected fifth wave (wave v) rallies through resistance at 0.8867 for more upside progress towards the next minor target at 0.8990 on the way higher.

R3: 0.8990

R2: 0.8900

R1: 0.8867

Pivot: 0.8848

S1: 0.8826

S2: 0.8804

S3: 0.8760

Trading recommendation:

We are long EUR from 0.8760 and we will move our stop higher to 0.8730.

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