FX.co ★ Elliott wave analysis of EURGBP for May 6, 2020

EUR/GBP dipped slightly lower than expected and didn't find support before a test of 0.8689. This corrective decline from 0.8814 is more than enough to reset, what we expect is the start of a new impulsive uptrend, which should break above the short-term key resistance at 0.8866 to confirm more upside pressure, that ultimately should break above the peak at 0.9499.

Short-term a break above minor resistance at 0.8758 will be a strong indication of a corrective bottom being in place for renewed upside pressure to 0.8866 and above.

R3: 0.8866

R2: 0.8814

R1: 0.8758

Pivot: 0.8720

S1: 0.8688

S2: 0.8670

S3: 0.8621

Trading recommendation:

We are long EUR from 0.8765 with our stop placed at 0.8670