Elliott wave analysis of EUR/GBP for July 10, 2020

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EUR/GBP is now at the cross-road. The corrective target at 0.8946 is being tested. It may protect the downside if our bullish count is correct. A break above minor resistance at 0.9010 and more importantly a break above resistance at 0.9068 is now needed to keep this count our slightly preferred count.

If, however, EUR/GBP fails to hold above support at 0.8946 and more importantly support at 0.8912 the preferred count shifts in favor of wave 2. Another dip towards 0.8347 should be expected before the correction from 0.9500 finally comes to its conclusion and a new impulsive rally starts.

R3: 0.9068

R2: 0.9010

R1: 0.8992

Pivot: 0.8961

S1: 0.8946

S2: 0.8911

S3: 0.8867

Trading recommendation:

We bought EUR at 0.8646 and we will raise our stop to 0.8610.

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