EUR/GBP continued through the expected support at the 50% corrective target 0.8891 to a low of 0.8811. This new low was as expected, thus a bit lower than expected. However, this new low likely marks the end of wave iv and the onset of wave v towards 0.9742.

That said, we need a break above minor resistance at 0.8948 and more importantly a break above resistance at 0.9006 to confirm that wave v is developing for the final impulsive rally towards our ideal target at 0.9742.

R3: 0.9040

R2: 0.9006

R1: 0.8948

Pivot: 0.8910

S1: 0.8900

S2: 0.8870

S3: 0.8842

Trading recommendation:

We are long EUR from 0.8900 with our stop placed at 0.8800