EURGBP Elliott Wave Analysis | Trading Lounge Day Chart
Euro/British Pound (EURGBP) Day Chart Analysis
EURGBP Elliott Wave Technical Analysis
Function: Bearish Trend
Mode: Impulsive
Structure: Orange Wave 1
Position: Navy Blue Wave 3
Direction (Next Higher Degree): Orange Wave 2
Details: Navy blue wave 2 appears complete, with orange wave 1 of navy blue wave 3 currently in motion.
Wave Invalidation Level: 0.84490
The EURGBP Day Chart, interpreted using Elliott Wave Analysis, highlights a bearish trend reinforced by an impulsive wave structure. The configuration suggests the current focus is on orange wave 1, which unfolds within navy blue wave 3, signalling ongoing downward momentum that aligns with the broader trend.
Analysis Breakdown:
-
The navy blue wave 2 is likely finalized, paving the way for the development of orange wave 1 within navy blue wave 3. This reflects the continuation of an impulsive Elliott Wave formation, supporting a bearish outlook.
- As navy blue wave 3 progresses, it underscores strong downward momentum, with orange wave 2 acting as the next higher-degree corrective target. Temporary upward movements are expected to remain short-lived corrections, failing to disrupt the overarching bearish framework.
Key Invalidation Level:
- The critical invalid level for the current structure is 0.84490. A breach above this level would invalidate the current bearish wave count and prompt a reanalysis of the structure.
- Maintaining price action below 0.84490 validates the ongoing bearish trajectory, reinforcing the probability of continued declines.
Summary:
The EURGBP Day Chart suggests a bearish trend defined by the impulsive orange wave 1 within navy blue wave 3. The overall outlook expects further declines, with 0.84490 as a pivotal invalidation level. Monitoring this threshold is essential to confirm the bearish structure remains intact.
Euro/British Pound (EURGBP) 4-Hour Chart
EURGBP Elliott Wave Technical Analysis
Function: Bearish Trend
Mode: Impulsive
Structure: Orange Wave 1
Position: Navy Blue Wave 3
Direction (Next Higher Degree): Orange Wave 2
Details: Navy blue wave 2 appears complete, with orange wave 1 of navy blue wave 3 currently unfolding.
Wave Invalidation Level: 0.84490
The EURGBP 4-Hour Chart, analyzed through Elliott Wave Theory, reinforces the bearish trend with an impulsive structure. Orange wave 1, now in progress within navy blue wave 3, aligns with the broader market momentum for continued downside movement.
Analysis Breakdown:
-
With navy blue wave 2 likely concluded, the unfolding of orange wave 1 marks the start of a deeper bearish phase within navy blue wave 3. This setup is consistent with Elliott Wave impulsive patterns, emphasizing a bearish directional trend.
- The hierarchical position of navy blue wave 3 confirms the dominant bearish bias. Any short-term upward corrections related to orange wave 2 are expected to remain part of the corrective structure rather than a reversal of the main trend.
Key Invalidation Level:
- The wave invalidation level is established at 0.84490. Should prices rise above this threshold, the current bearish outlook would require reassessment.
- Sustaining price levels below 0.84490 affirms the ongoing bearish sentiment and supports further declines.
Summary:
The EURGBP 4-Hour Chart analysis highlights a bearish trend, driven by the impulsive orange wave 1 within navy blue wave 3. With 0.84490 as the critical invalidation level, the bearish structure remains valid, projecting further downside unless this threshold is breached.
Technical Analyst: Malik Awais
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