EURGBP – AB=CD formation and 50% to limit buying
The immediate bias is bullish, but we look for rallies to be sold
Monthly: Since posting large nett losses in September 2017 (-395 pips) the cross has moved sideways. Price action on March (2018) has seen a bearish Outside Month posted and offers a mild downward bias. Notable support is located at 0.8303
Weekly: The 161.8% extension level from the 0.9299-0.8682 move is located at 0.8303, just below the aforementioned support
Daily: With bespoke support located at 0.8690, there is scope for further short-term losses, but dips should be bought. If this downside barrier holds then an AB=CD corrective formation will take the cross to 0.8118. This is the 50% pullback level of the 0.8967 – 0.8668 move and is our prime medium-term short entry level.
Action:
We look to Sell at 0.8810
Stop: 0.8875
Targets: 0.8715
