EURGBP, Monday April 29, 2013

Hi Traders

SITUATION of EURGBP:

Although the currency pair started now a minor rally to a possible target in the area 0.8463-08473, the down trend will then resume to the area 0.8377-0.8366 and maybe 0.8275-0.8259

SETUP

We  need 5 major waves down to take the pound to 0.7765 in the monthly chart below. 4 of them are in place already (in magenta) and the 5th one is on its way to unfold from point 4 downward. 

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The weekly chart below shows the 4 waves (in magenta) and the start of the last major wave down (wave 5) with a nice 1-2 (in black)


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See the targets in the area 0.8377-0.8366 and 0.8275-0.8259 in the daily chart below 

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And so the target at 0.8473-0.8463 in 4-hour chart below. Note that this minor rally enfolding now is due to the development of minor wave 4 up. See the waves 1-2-3 in black

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Finally, see the "Wave Oscillator" in the 1-hour chart below with faded candles to better show the dynamics of the oscillator which shows a double bottom and the 2 black lines getting together to indicate the start of the new rally.


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