EUR/GBP – Posting by Jurgen V., Wavy Tunnel PRO student

Monthly

The fact price is at a S&R zone with the bungee being in the URZ we should be thinking that price will make a bear move eventually. With the emphasis on eventually because the red and blue bungee are pointing upward still. So are all the other strands. The AO doesn’t come in to play on the monthly. It’s not giving us any info at this point.

EURGBP -Monthly

Weekly

First thing I notice is the missing URS. If price would move up a little more to paint one we’d be hitting the 38.2% retracement on the last swing move down. That would be in line with the potential reversal zone of that harmonic pattern that seems to be completing. We need to look at how price is behaving in this zone and not jump in blindly. The real point D will reveal itself through price action and/or a WT Plus set up on lower TF’s.

For now, I’d say we wait for that URS. Look at the bungee “wanting” to get into that URZ. The AO also needs price to make a higher high in order to be divergent. Which would add to the case I am making.

EURGBP - weekly

Daily

The divergence on the AO we’re not yet seeing on the weekly but is already present on the daily. The bungee is forming a SA and it should (we’ll see) give us a higher price high. I’ve got my eye on that 0.8136 zone.

EURGBP - daily

4H

Is the 4H showing us the start of that bearish reaction off of point D? I don’t think so. The bungee is forming a SA and the fastest strands are in the LRZ. Okay, yellow and green are leaving the URZ and the red + blue are pointing down. This looks like a 3-wave correction which will be followed by another move higher for that Point D.

EURGBP - 4H

1H

The 1H is looking for that LRS for now.

EURGBP -1H

Conclusion

The Weekly and the daily are the TF’s to look at this time. Especially with Easter Monday… we’ll follow this up and see if we can find some trades on lower TF’s as this unfolds.

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