We published bullish sentiments on EURGBP in our previous analysis on 13th July exclaiming that the pair had 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. But from current market scenario, after returning back to the horizon at 0.84758, its previous lowest low in daily, there are high chances of liquidity being pumped in due to the high supply and demand zone. We also mentioned in our previous analysis that when we compared the monthly and daily perspective, there were more chances of the pair to go bearish towards our key price action level i.e 0.85000 and 0.84700.

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

As ive explained above about the high supply and demand in this zone, we are expeting the market to taken some bullish turns from the current market price. 0.8350- 0.8280 should be kept in concern by the retail traders if Euro versus Great Britian Pound broke out below our high supply and demand zone. In four hourly chart, the relative strength index is showing that EURGBP has entered oversold conditions while in daily and weekly the market is near 30, showing indecisiveness with possibilities of an irregular correction to hunt stop losses. Also observing the market from four hourly time frame under the lens of elliot wave pattern, there are high probabilities of the 5 wave structure being completed and yet again we will be having a bullish correction. For a confirm change in trend towards hawkish projections, keep our upper trend lines in regard at 0.8500 and 0.85900-0.8600 in terms of a break out above. 

EURGBP

Aug 07 2021