Forex Technical Update June 28, 2010 EUR/GBP: Accelerated Down Swing Reflects Wave 3
- Daily: The EUR/GBP continues to slide. In Friday's weekly update, I mentioned that the bearish outlook was confirmed, and I was waiting for a short rally to 0.83 before further decline.
- The rally attempt was thwarted at 0.8275, and the market declined sharply ahead of the US session open.
- This continues to confirm the count where we are basically in wave 3 of (C). We are also in wave (iii) of 3. A projection of wave 3 to be 161.8% of wave 1 targets 0.7850.
- The 4H chart here shows the internal, agreeing with the count in the daily. It should be noted that the RSI shows a very bearish momentum.
- Not shown here, but if you project wave iii to be 100% of wave i, it projects to 0.8130, just below the current price level.
- 161.8% points to 0.7750, exceeding the projection of the higher time-frame projection. These are target projections, not levels of anticipated support, so we can say this zone between 0.7750 and 0.7850 is expected to provide the pair with support.
- Since this is a projected end of wave 3, we can say the strongest part of the EUR/GBP may be complete in this zone, but further decline may still follow.
Fan Yang Currency Analyst Commodity Trading Advisor
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