EURGBP Elliott Wave Analysis Trading Lounge Day Chart

Euro/British Pound (EURGBP) Day Chart Analysis

EURGBP Elliott Wave Technical Analysis

Function: Trend

Mode: Impulsive

Structure: Orange Wave 3

Position: Navy Blue Wave 3

Direction Next Lower Degrees: Orange Wave 3

Details: Orange Wave 2 appears completed, now in Orange Wave 3 of 3.

Cancel Invalid Level: 0.84607

The EURGBP Elliott Wave Analysis on the day chart reveals a trend with an impulsive mode. The current wave under observation is Orange Wave 3, which is positioned within Navy Blue Wave 3. This indicates that the market is experiencing a strong directional movement phase.

The completion of Orange Wave 2 has led to the transition into Orange Wave 3 of 3, signaling continued impulsive movements. This suggests that a significant correction or consolidation phase has ended, setting the stage for ongoing directional trends in the market.

The next lower degrees also indicate Orange Wave 3, implying that the impulsive phase within Navy Blue Wave 3 is likely to persist. This ongoing momentum provides potential trading opportunities, supported by the robust trend continuation in Orange Wave 3.

A critical element in this analysis is the wave cancellation invalid level, set at 0.84607. This level acts as a crucial threshold for validating the current wave analysis. If the market price drops below this level, it would invalidate the current wave count, indicating the need to reassess the wave structure and potentially revise the market outlook.

Summary:
The EURGBP day chart analysis shows the market in an impulsive phase within Orange Wave 3, following the completion of Orange Wave 2. The market is expected to maintain a strong trend as Orange Wave 3 of 3 progresses. The wave cancellation invalid level of 0.84607 is critical for validating the current analysis, serving as a threshold to reassess the wave structure if necessary.

EURGBP Elliott Wave Analysis Trading Lounge 4H Chart

Euro/British Pound (EURGBP) 4-Hour Chart Analysis

EURGBP Elliott Wave Technical Analysis

Function: Counter Trend

Mode: Corrective

Structure: Gray Wave 2

Position: Orange Wave 3

Direction Next Lower Degrees: Gray Wave 3

Details: Gray Wave 1 appears completed, now in Gray Wave 2 of 3.

Cancel Invalid Level: 0.84607

The EURGBP Elliott Wave Analysis on the 4-hour chart indicates a counter-trend function with a corrective mode. The current wave structure under analysis is Gray Wave 2, situated within Orange Wave 3. This suggests the market is in a corrective phase following the completion of Gray Wave 1.

Gray Wave 1 appears complete, leading to the transition into Gray Wave 2 of 3. This phase is characterized by corrective movements, indicating a retracement of some progress made during Gray Wave 1. The corrective nature of Gray Wave 2 suggests a temporary pause or reversal in the market's previous impulsive movements.

The direction for the next lower degrees points to Gray Wave 3. Upon completing Gray Wave 2, the market is expected to enter Gray Wave 3, likely resuming impulsive movement. This transition from a corrective phase to an impulsive phase suggests that the market may soon return to a more directional trend.

A key aspect of this analysis is the wave cancellation invalid level, set at 0.84607. This level serves as a critical threshold for validating the current wave analysis. If the market price falls below this level, it would invalidate the current wave count, indicating the expected wave pattern is no longer valid and requiring a reevaluation of the wave count.

Summary:
The EURGBP 4-hour chart analysis indicates the market is in a corrective phase within Gray Wave 2, following the completion of Gray Wave 1. The market is expected to transition into Gray Wave 3 after Gray Wave 2 completes. The wave cancellation invalid level of 0.84607 is crucial for validating the current analysis, serving as a threshold to reassess the wave structure if exceeded.

Technical Analyst: Malik Awais

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