EUR/GBP is finishing a projected correction within uptrend
|EURGBP is moving nicely as expected within a three-wave abc corrective setback in wave B as shared back on July 31. It’s actually nicely approaching projected support around 0.8600 level or slightly lower for wave “c” of a three-wave abc correction in wave B, so as soon as it fully unfolds, we will expect a continuation higher for wave C.
EURGBP 4H Chart
From a technical analysis perspective, support levels such as 0.8600 are key decision points where traders often watch for changes in momentum. These areas can attract buying interest, particularly when they align with well-defined chart patterns or Fibonacci retracement zones.
In Elliott Wave theory, price movements unfold in a repeating sequence of motive and corrective phases. Motive waves (like wave C in our case) typically move in the direction of the broader trend, while corrective waves (like the current wave B) retrace part of that move. The ABC corrective pattern seen here is a classic structure, where waves a and c move in the same direction, separated by a countertrend wave b. Identifying these phases helps traders anticipate the next potential move and manage risk more effectively.
In this scenario, the completion of wave B could pave the way for a strong upward push in wave C, provided support holds and momentum shifts back in favor of buyers.
Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.