Elliott wave analysis of EUR/GBP for July 7, 2020

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After a nice run to the 61.8% resistance target at 0.9183 we saw that EUR/GBP corrected a bit stronger than we had expected. However, EUR/GBP met strong trendline support near 0.9000, which is expected to protect the downside from renewed upside pressure through minor resistance at 0.9079 and more importantly through resistance at 0.9109 that indicates a new test and ultimately a break above the minor peak at 0.9175 for a continuation towards the next minor target at 0.9276.

An unexpected break below the short-term important support at 0.9000 will delay the expected rally for a dip to 0.8946.

R3: 0.9183

R2: 0.9125

R1: 0.9079

Pivot: 0.9040

S1: 0.9000

S2: 0.8946

S3: 0.8910

Trading recommendation:

We are long on EUR from 0.8760, we should raise our stop to 0.8985

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