Today i'm visiting my favorite Forex pair to look at and discuss a very long term Elliott Wave count that it appears to have formed. It appears as if in early 2008, a 5th wave completed as a high. From there the market has been clearly corrective, ultimately going sideways. A Zig-zag completed into mid 2015 and from there we have seen a sharp move to the upside. The reason I am labeling that particular bounce as a Primary ((A)) instead of ((1)) is because Primary ((B)) is forming a triangle. Wave ((2)) cannot be a triangle as triangles are penultimate patterns and are followed by a wave ((C)), ((5)), ((Y)) or ((Z)). Therefore, I have come to the conclusion that we are likely to see a 3 wave move to the upside from the 2015 low. This means on the Cycle (turquoise) degree, we are going to either see a flat or triangle (variation thereof) pattern. That leads to believe that EURGBP will be capped by 1.10 (and ultimately 1.16) and as long as it remains below this level, it remains under pressure to the downside until the pattern has been completed (as a result of the break of 0.69).
For now, the market looks like it will continue sideways while Primary ((B)) is under progress and therefore there is no great enter and hold opportunities. I would wait for Primary ((B)) to complete before then looking to buy and hold. We have to remember that the pattern could change, however by looking at the previous patterns we can expect this pattern to play out.
I hope you found this useful and in decades to come, we can review this chart. :) Goodluck!
For now, the market looks like it will continue sideways while Primary ((B)) is under progress and therefore there is no great enter and hold opportunities. I would wait for Primary ((B)) to complete before then looking to buy and hold. We have to remember that the pattern could change, however by looking at the previous patterns we can expect this pattern to play out.
I hope you found this useful and in decades to come, we can review this chart. :) Goodluck!
