- 4H: I have been bearish on the EUR/GBP. Last week, the EUR/GBP was in consolidation, as you can see in the 4H chart, with the upwards channel. We were at wave c in Friday's Weekly Update, and the market has then declined and rallied, to complete d and e waves.
- This could be the completion of this channel, especially when today's morning US session decline is engulfing previous 5 4-HR candles. This is a bearish signal.
- In the short term, a swing projection aims at 0.8220. If there is a rally correction first, it should not go above 0.8320 or the bearish outlook is either not ready, or invalid.
- Daily: The market daily chart shows an intermediate target of 0.8060 area. This is the previous low, and a swing projection from the 0.8530 high.
- The RSI reflects the continuing bearish momentum, even though it did break above 60 for a couple of days.
- Before this outlook, treat the 0.82/0.8220 area as support and see if the market can break that too.
Commodity Trading Advisor
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