The fall started from 1.5904 is corrective in nature and developed as a triple corrective combination which ended with a triangle. It finished at 1.5406 and a new strong rise followed. The possibilities for it are two – impulsive movement for a new high above 1.5904 or corrective movement in wave B (wave A is the 1.5904 – 1.5406 movement) followed by another fall in wave C. There is still no clearness what exactly is developing because none of the possibilities is ruled out. I continue to favor the corrective interpretation which suggests that 1.5904 will remain intact. However I think that a new high above today’s high 1.5858 is very likely so I entered long for such a movement. I gave as a target only 1.5860 because it is possible the rise to turn out indeed corrective and also I expect very big movement move down in EUR/GBP. An important support is 1.5720 which is a stop loss of the current long position. A key resistance is the 1.5904 high.

Trading strategy: 10:18 EST; 14:18 GMT

Long position from 1.5757, stop loss - 1.5720 (stop and reverse), target - 1.5860

Confidence level – medium

This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.