Guest Commentary: MarketVisionTV - EURGBP Expansion has Reached Breaking Point
Euro Sterling continues to beg the question of a correction from the 98 high in time or distance....
The answer should be provided very soon with further erratic but bullish price action as opposed to clean bearish price action and by a Reverse (that is expanding) Mandelbrot analogy.
The drop to 82.20 satisfied a three wave decline a complex double zig zag...the C and third leg of a bullish triangle and therefore a consolidation base. What we need now is overlap with the 85.15 pivot to confirm. And the price from the 82.20 low supports this as it is repeating itself on a larger scale projecting today as equivalent of January 11th and imminent break through 84.10 to confirm and accelerate an inverse head and shoulders to an analogy (a 2.5 multiple) target of 85.90 to end the first leg of a new triangle upswing to 88.85. Until then we must allow further consolidation with a loss of 83.50 retesting 82.70. Only a failure to sustain the break of 84.10 (or indeed a loss of 82.20) suggests clean trending price action within an initial retest of hte 80.65 low but an eventual final spike to 77.85.
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By Ed Matts, MarketVisionTV.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.