The chart shows my working count for EUR/GBP for the last two weeks movement. The recovery started from the reached low 0.8399 (22.06.2009) is corrective in nature and is developing as a flat correction. Wave C of it is a terminal impulse (ending diagonal) which should be already over. In such a case one should expect a sharp and strong sell-off for a low below 0.8399. A first signal for this idea will be a fall below 0.8616 and confirmation € below 0.8580. A key support is 0.8715 and a rise above it will abort the presented count. With an eye on the expected sell-off I am currently on a short position.
Trading strategy: 07:37 EST; 12:37 GMT
Short position from (0.8638), stop loss - 0.8720, target € open
This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.