EUR/GBP: Expect more selling pressure
|EURGBP, this pair corrected aggressively lower down to the 50 Fibonacci level. This move lower was impulsive and in five waves signalling to us that this was the start of a zigzag. A zigzag pattern is a 5-3-5 pattern as a correction of the larger degree trend.
We touched 0.90806 and moved higher from that level in a slow and choppy manner. The dotted lined marked 0.92094 in the chart below is the 61.8 Fibonacci level of the initial move lower. Which is a good area to look for short positions in the direction of the zigzag correction with targets around 0.90065.
0.90806 would meet the minimum requirements for a zigzag land the pair may continue higher from that 50 Fibonacci level instead of going lower. Keep an eye for a bounce in the direction of the larger degree trend moving forward.
Key news events out this week:
Wednesday 23rd of September French Flash Manufacturing and services PMI, German Flash Manufacturing and services PMI, GBP Flash Manufacturing, and services PMI.
Res: 0.92094; 0.92914; 0.93293
Sup: 0.90806; 0.90065; 0.89626
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