EURGBP has completed 5 waves in a downtrend and a bottom is in place due to the fact that final wave has completed an ending diagonal pattern.

A magnified view of the ending diagonal pattern can be seen below on the 4 hour chart. This pattern will be followed by a trend reversal and thus a surge in price of EURGBP with minimum immediate target of 0.75 which is the high of the previous wave i.e. wave 4.
On the hourly chart a small impulsive upmove has already begun with the formation of higher tops and higher bottoms in 5 waves. However, a definitive confirmation will happen once the EURGBP breaks out of the ending diagonal pattern above the uptrend line of the pattern which is currently near 0.7098.

The above analysis concludes that EURGBP has formed a major bottom and as a result any impending trend reversal can take the pair to atleast 0.75. However, as the time passes and new waves evovle a higher target of 0.8 cannot be ruled out.
Translate to English Show original