EUR/GBP - At its target, bottom should be seen soon

EUR/GBP at its long term target, bottom should be seen soon

With a low printed at 0.7887, we are just 4 pips above the target-area between 0.7868 - 0.7883. Whether we will see a perfect test of the target-area or not is not important to me, what's important is, that a long term bottom should be expected soon for a major rally.

The first strong indication of a bottom being in place, will be a break above minor resistance at 0.7920 and more importantly a break above resistance at 0.7980, which will confirm that a bottom is in place for a rally to at least 0.8155 on the way higher to 0.8467 and higher.

You might wonder, why I expect a long term bottom in the 0.7868 - 0.7883 area?

The first reason is, that at 0.7883 wave 2 will have corrected 88.6% of wave 1. Second waves area allowed to correct 100% of wave 1, but a bottom will often be found near the 90% corrective target. 

The second reason is, that red wave v will be 38.2% of the distance travelled from the top of red wave i to the bottom of red wave iii subtracted from the top of red wave iv at 0.7868.

The third reason is, that we can see a clear divergence between price (making new lows) and the indicators (not making new lows). This is a sign of loss of momentum and tells us, that a bottom could be seen soon.

All together indication of a possible bottom being in place soon. Only a break below the starting point of wave 1 at 0.7763 will invalidate the long term bullish count. 

Great job this week!! Wish that I had more capital to capitalize on all of your great calls! The ones that I have managed to catch have been extremely profitable. I really appreciate you sharing you v...
Great call on nat gas

Just wanted to drop you a note to say great call on nat gas as it held 2.67

Great job.

Hi Surfer,

Super calls !! And analysis.

Bravo for your brexit call !!
Whats next?

Ull need to update all indices!