EUR/GBP Is On A Bullish Path

Ville Vainio

EUR/GBP is on a bullish path and is nearing new mid term highs soon. After we have concluded this large corrective phase, larger reversal is expected. My preferred wave count is looking for a small degree 5 wave structure to be completed before larger reversal can occur. We have been on a corrective phase since march of 2015 and are nearing the end of this large structure.

When the turn down happens, i am expecting a large degree 5 wave structure to the downside and eventually towards new long term lows. There is correlation between other Euro pairs and in particular EUR/USD has similar wave structure. We can expect a reversal in both pairs soon.

EURGBP 4 Hour Chart

EURGBP 4 Hour Chart