EURGBP has been under a complex corrective structure under daily time frame with an extension and more volatility due to the covid delta variant situation in U.K and across the Europe. On monthly chart the pair had completed its 5 wave impulse and initiated for a corrective structure which if compared in descending order across the time frames - all is supporting the stance of 'abc' formation with its 'c' wave almost about to complete under monthly time frame. When we compare the monthly and daily perspective, there are more chances of the pair to go bearish towards our key price action level i.e 0.85000 and 0.84700.  As we are aware of the fact that wave 'c' is the most extended wave amongst the corrective waves, following this, we might experience EURGBP moving towards 0.83700 to complete its correction of higher degree which will provide the best suitable possibilities for executing bullish trades. Market is already at a key price i.e being near to 0.85000 which for now is a good buying zone with 30 pips of SL. We wouldnt risk more because the MACD from daily as well as H4 time frames are submitting the momentum onto dovish sentiments. 

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

MACD can be seen carrying a tug of war between the bears and bulls for none can provide a strong impulse on a larger time frame coming anytime soon. In the current market scenario if the daily support isnt broken, EMA50 will be our target for executing our buys. If daliy resistance is broken, EURGBP will move towards our upper trend line which is situated at 0.86000 but do not ignore the EMA200 in between which might give a minor reversal. For bearish precautionary measures, divide your trades with minimum risk ratios because of minimum price action supporting the role of bears. Breaking of Daily support will pull the pair towards 0.84700 and that is one of the more appropriate levels to execute our bullish trades. 

EURGBP H4

Jul 13 2021