Hello traders. In this technical article, we will take a quick look at his Elliott Wave chart for EURGBP, which is published in the members area of ββthe website. Our team recommended members to avoid buying while favoring the short side of the pair. Recently, we have seen a recovery that has reached our sales zone. The pair found a seller and, as expected, received a response from the blue box. Further text will discuss Elliott wave predictions and trading strategies.
EURGBP Elliott Wave 4-hour chart 03.23.2024
The pair has corrected its cycle from the 0.87148 peak, resulting in a 4-red recovery. The price has already reached the extreme zone (blue box β seller zone) of 0.85817-0.86330. So we know we may or may not see another slight push inside the blue box. Alternatively, the 4 red could already be completed as an Elliott wave double three pattern at a height of 0.86019. We do not recommend buying a pair. Prefers the short side of the blue box zone. Since the main trend is bearish, we expect at least three waves to pull back from the sell zone. ((b)) When the decline reaches 50 fibs against the black low, short his position risk-free (place SL on BE) and lock in partial profit. The invalidation of the short trade is above 1.618 fib ext: 0.8633.
Quick reminder:
Our charts are easy to trade and understand:
Red bearish stamp + blue box = sale setup
Green Bull Stamp + Blue Box = Buy Setup
Charts with black stamps cannot be traded. π«
EURGBP Elliott Wave 4-hour chart 04.13.2024
This pair found a seller in the blue box area: 0.85817-0.86330. The recovery was completed at the high of 0.86019, receiving a good reaction from the sell zone. The drop reached and exceeded 50 fibs relative to the connector’s lowest value. Therefore, the member who made the short sale transaction is now enjoying the profits of a risk-free position. While below the 0.86019 high, the next low is likely progressing towards a new low.