EURGBP Technical Strategy: On break of trending line, it will be else temporary
Elliottwave Count: Correction is too short to mark complete, however price will take decision on trending line.
EURGBP is trading in sideway and on weekly chart, it need to complete it's wave C (last leg of correction), however, same time price completed it's expected fibbo zone of 38.2% 8300 area with very unusual correction format. We need to respect price level at this moment but considering all possible count available on market, we are come with two highly possible count.
Scenario 1: view
If price is breaking drawn 8850 to 8790, we are testing , if price is break this resistance and able to close day above it, this will consider a outlook and can be seen more upside towards 8952 and subsequent highs. We are considering those move as a impulse move and mark in green labels.
Scenario 2: outlook
We are expecting and having high probability of this outlook considering correction was unusual and require to complete it's last leg, we want to see false breakout, resistance on 8700 area, post that, we are looking to see fallback to 8500, this view can bring price level to 8010 area. This view is also inline with our long term view on EURUSD .
We are initiating short @ 8690 with stoploss on 8750 target 8010.
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