News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.63%, while traders in EUR/GBP are at opposite extremes with 64.46%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/uxUVKs9BeK
  • 10 out of 11 S&P 500 sectors ended higher on Friday, with half of the companies in the green. Information technology (+1.63%), consumer discretionary (+1.44%), utilities (+1.12%) were among the best performing ones, whereas energy (-0.26%) lagged. https://www.dailyfx.com/forex/market_alert/2020/09/28/Nasdaq-100-Futures-Extend-Gains-Hang-Seng-and-Nifty-50-May-Rebound.html https://t.co/eIecw9NQQD
  • The Hang Seng Index (HSI) has likely formed a bullish “AB=CD” pattern, with the “D” point found at around 23,080. A rebound from the “D” point may lead to more gains with an eye at 23,760 and then 24,200. https://t.co/ObmqqYa5P4
  • Wall Street Futures Update: Dow Jones (+0.39%) S&P 500 (+0.33%) Nasdaq 100 (+0.30%) [delayed] -BBG
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/mkHo2v37as
  • #2020election polls continue to show Democratic nominee Joe Biden maintaining a strong lead #Trump Supreme Court nomination may throw a wrench into bipartisan stimulus talks #AUDUSD is trading at former resistance-turned-support. What happens if it breaks? https://www.dailyfx.com/forex/fundamental/article/special_report/2020/09/27/AUDUSD-Analysis-Ahead-of-Presidential-Debate-Supreme-Court-Nominee-Battle-.html
  • USD/MXN pushes higher as a long-awaited correction in the US Dollar gets underway. Get your #currencies update from @HathornSabin here: https://t.co/QMpun4KOgO https://t.co/KAYojshy0P
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/KXMefr6a3r
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/5FwNLSVYje
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EDT on DailyFX! https://t.co/lxd5fZnn4H
Tightening Risk for EUR/GBP to Elliott Wave Key Level

Tightening Risk for EUR/GBP to Elliott Wave Key Level

2017-12-05 10:50:00
Jeremy Wagner, CEWA-M, Head of Education
Share:

Last week, we set up an analyst pick trading around Sterling. The GBP/USD leg of the trade was immediately stopped out with a 100-pip loss. The EUR/GBP leg of the trade is well in the money by nearly 120 pips (and EUR/GBP pips are worth more than GBP/USD pips). Today, we want to tighten the risk level on the open EUR/GBP leg.

Short EUR/GBP

Shortly after writing the analyst pick, EUR/GBP finished its triangle pattern and began to correct lower. This would place the market in the (c) wave of an a-b-c bearish zigzag. The (c) wave should subdivide into five waves. It appears the first wave is complete and a second wave is currently underway. Bears will get another opportunity to short with a positive risk to reward ratio on the second wave partial retracement higher.

Why is a positive risk to reward ratio of 1 to 5 important, read about it in our Traits of Successful Traders research.

Tightening Risk for EUR/GBP to Elliott Wave Key Level

If this Elliott Wave labeling is correct, then EUR/GBP should remain below the beginning of the (c) leg’s high at .8982. Therefore, we will tighten the stop loss to the beginning of wave (i) at .8982. If EUR/GBP is successful in moving to new lows below .8755, then we will move the stop loss further down. Our first target remains at .8620 and a secondary target remains at .8406.

New to FX trading? We created this guide just for you.

Get started learning about Elliott Wave. Grab the beginner and advanced Elliott Wave trading guide.

Tightening Risk for EUR/GBP to Elliott Wave Key Level

---Written by Jeremy Wagner, CEWA-M

Jeremy is a Certified Elliott Wave analyst with a Master’s designation. Read more of Jeremy’s Elliott Wave reports via his bio page.

Discuss this market with Jeremy in Monday’s US Opening Bell webinar.

Follow on twitter @JWagnerFXTrader .

Join Jeremy’s distribution list.

Other Elliott Wave forecasts by Jeremy:

EUR/USD Elliott Wave analysis points to higher level.

Silver and Gold Downtrends May Have More Room to Run [Webinar recording]

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES