EURGBP—corrective structure

The pair has been meandering in a corrective structure that could be an ABC correction. I've labeled it on the 1-hour chart as such so the next move should be down. If wave C equaled A the price would be .8565—the pair reached .8552 where it also ran into a couple of resistance lines. The triangle I wrote about yesterday is still a possibility but there's no real fibo relationship between waves ABC which one expects to see. If it was a triangle, one would expect a price target for wave five of at least .8347.

Now to see what happens as it approaches.8463/43. The Nov. 11th low was .8450; this is also the price where it hammered out a base as well as being the .618 retracement of 8143/8941 and a price support. I'm short from .8511 (I was taken out of my first one at breakeven and went back in).

Here's the one-hour chart:













© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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