Both the euro and the sterling suffered from the strength of the dollar, but compared to one another, the European currency was the bigger loser, since it fell against the pound as well. However, the 4-hour chart of EUR GBP shows something, which might cheer the bulls up. There seems to be one Elliott Wave pattern, suggesting we should expect a reversal soon.

An ending diagonal seems to be in its final stages. Wave “c” of 5 of (5) is the only missing part. In other words, if this is the correct count, EUR GBP should make one last bottom near 0.69 and reverse to the upside. Of course, with ending diagonals it is always better to wait for confirmation, instead of trying to pick the very bottom.

CURRENCIES ELLIOTT WAVE PRINCIPLE ELLIOTT WAVE THEORY EUR EURGBP euro EURO TO POUND FOREIGN EXCHANGE FOREX RATES FOREX TRADING FOREX TRADING STRATEGIES GBP MARKET pound TECHNICAL ANALYSIS TRADING