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Contributors Top Trade Idea For December 16th, 2014 – EUR/GBP

In today’s analysis we will take a look at EURGBP which is in downtrend actually since 2008 as showing on the weekly chart below. On that count we are looking at a double zigzag, now with wave C) in progress that can complete wave (Y) sometime next year. But notice that pair for now still holds 0.7750 support that should be taken out before we may look for any trend changes; from bearish to bullish mode. So from a trading perspective this can be interesting for short set-up as there is room for another 300-400 pips of decline.

EURGBP Weekly Elliott Wave Analysis

EURGBP dec 16 2014weekly

EURGBP Weekly Elliott Wave Analysis 

EURGBP dec 16 2014weekly 2

On the 4h chart we see a sideways price action, but notice that we can count five waves here, labeled as an A-B-C-D-E. We are looking at a triangle which is a continuation pattern, now near completion so weakness could start soon as wave € is already reversing from latest resistance levels at 0.8000. Ideally downtrend is back in play, but real weakness should occur after a break beneath 0.7870 wave x) support.

EURGBP 4h Elliott Wave Analysis 

EURGBP dec 16 20144h

Trade plan can be as follows:

Short at market 0.7950 with stops at 0.8050

Target is 0.7750

Move stops to break even when risk: reward comes to 1:1.

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About Gregor Horvat

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Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/ TryEW-Forecast.com’s Services For 14 Days for just €1 at http://www.ew-forecast.com/service .

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