EURUSD found a support on Friday after NFP report around 1.3100 area from where we have seen more than 80 pip rally back to the wave 2-wave 4 trendline. Usually when this occurs it means that five wave decline is complete and that market reversed into a temporary correction.

As such, we are now tracking an A-B-C retracement back to 1.3225-1.3250 region before we may turn bearish again. In that zone we can also see a former wave four that may react as a reversal level and cause a new sell-off for the pair.

EURUSD 4h Elliott Wave Analysis

Meanwhile we are also tracking GBPUSD which is stronger than EURUSD lately but it also has a bearish wave structure. Rally from March low on GBPUSD is a complex pattern most likely a flat in wave II where we may see test of 1.5750 this week after recent bounce from the lower side of a current upward channel.

However, this new high will be just a final leg, fifth wave within wave (C), so larger bearish trend remains in view but GBPUSD just needs more time to turn down when compared to EURUSD, but we think that sooner or later pound will also turn south and catch the euro weakness.

GBPUSD Daily Elliott Wave Analysis

Written by www.ew-forecast.com | Try our 7 Days Free Trial Here

Ew-forecast.com is providing advanced technical analysis for the financial markets (Forex, Gold, Oil & S&P) with method called Elliott Wave Principle. We help traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our view and bias as simple as possible with educational goal, because knowledge itself is power.

Gregor is based in Slovenia and has been in Forex market since 2003. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets; from candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful to traders.
He was working for Capital Forex Group and TheLFB.com. His featured articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, gold, oil, and some major US indices.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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