Could EUR/GBP see .8500 and Below?!
Updated
Here I have EUR/GBP on the 1Hr Chart!
We can see that following the 3rd Divergent High @ .86248, price makes a steep Decline breaking the Previous Higher Low @ .85757 and creating a LOWER LOW @ .85496 turning this once Uptrend into a Downtrend!
After the New Low is created, we see price makes a textbook Retracement back to the 61.8% Fibonacci Level @ .85783 which happens to test the previous Higher Low to then proceed back down to close for the week just above the New Low!
I believe we could be witnessing the Confirmation of an Elliot Correction Wave coming where based on the ABC method:
-Prices' LH correction marking our B Point indicates that based off our Fib Ext Tool, we could see price Decline to the Range Target of ( .8457 - .84282 )
-Price Breaking the A Point will be Confirmation of potential Selling Opportunities
*.8500 will be the next area we will see Price wrestle with once it breaks the Lower Low @ .85496
Indicators: -Bearish Reading-
- Price is working BELOW my DEMA
- Flattening of the 200 EMA
- RSI BELOW 50 after creation of LL
-BBTrend printing Red Bars
We can see that following the 3rd Divergent High @ .86248, price makes a steep Decline breaking the Previous Higher Low @ .85757 and creating a LOWER LOW @ .85496 turning this once Uptrend into a Downtrend!
After the New Low is created, we see price makes a textbook Retracement back to the 61.8% Fibonacci Level @ .85783 which happens to test the previous Higher Low to then proceed back down to close for the week just above the New Low!
I believe we could be witnessing the Confirmation of an Elliot Correction Wave coming where based on the ABC method:
-Prices' LH correction marking our B Point indicates that based off our Fib Ext Tool, we could see price Decline to the Range Target of ( .8457 - .84282 )
-Price Breaking the A Point will be Confirmation of potential Selling Opportunities
*.8500 will be the next area we will see Price wrestle with once it breaks the Lower Low @ .85496
Indicators: -Bearish Reading-
- Price is working BELOW my DEMA
- Flattening of the 200 EMA
- RSI BELOW 50 after creation of LL
-BBTrend printing Red Bars
Trade active
Price opened below the Support Zone!!
Upon coming back up, I took a Sell Entry @ .8550!
SL @ .8565
Note
Just in case price spikes up to the Previous Highs, I will be pushing my SL up to .8575!!
Give price some room to breathe!
Note
Here I see price starting to form a Continuation Pattern, called a Bearish Triangle!! Looking for Price to Confirm Pattern with Break and Close below .85522
Note
Price has given us our 3rd Test of the Falling Resistance for this Bearish Triangle and we can see that price is being rejected from this area validating this Trendline!
Bulls are losing their momentum!!
Trade closed manually
Price seems to have gained support and gotten Bullish after not being able to break down below the .8550 area!
Will wait for the next Opportunity!
Trade active
Price has come up!
Sell Entry @ .8550
SL @ .8570
Trade closed: stop reached
We can see once we get the Lower than Forecasted print of CPI @ 2.2% Actual v. 2.3% Forecast, Price soars back up above the .8550 area hitting my SL! Note
It would seem after Price has given us another Low after breaking down below the .8510 zone!
Based from the New Lower Low, I suspect Price will try one more Retracement to the Fib Entry Zone and Retest the Lows @ .85032 - .85087 to then finish its Extension to the Range Target @ .84409 - .8405!
Novi_FIbonacci
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