I have not determined my specific entry point yet, but I am looking to go short EUR/GBP for a decline to at least .7800.
On the weekly chart, notice the clear 5-waves up from .6534. The MACD and RSI divergence indicate that the move is nearly exhausted. Wave-v = Wave-i in percentage terms @ .8191, and the recent high was .8186. Also, given the hammer candle on the weekly chart, I am predisposed to assume the top is in. However, the shorter term chart shows that there could be one more high before the turn.
The 4-hr chart shows 4 waves .7794. I would assume there should be a 5th wave up from this point, but given the factors in the weekly chart, we may not go above .8186. Regardless, I will wait for 5-waves down and sell on an upward correction.
On the weekly chart, notice the clear 5-waves up from .6534. The MACD and RSI divergence indicate that the move is nearly exhausted. Wave-v = Wave-i in percentage terms @ .8191, and the recent high was .8186. Also, given the hammer candle on the weekly chart, I am predisposed to assume the top is in. However, the shorter term chart shows that there could be one more high before the turn.
The 4-hr chart shows 4 waves .7794. I would assume there should be a 5th wave up from this point, but given the factors in the weekly chart, we may not go above .8186. Regardless, I will wait for 5-waves down and sell on an upward correction.
2 comments:
Very interesting. I'm going to have to disagree with your projections. I would go short EUR/GBP for a decline to at least .7790. Not 7800.
Anony, I could see that happening as well.
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