Sterling has broken 0.7955 to maintain the aggressive medium term blowout to the ideal 0.7785 final destination.
* An 'Analogy of an Analogy' makes it alot easier and precise
* Short term strategy is starting to change to accomodate...
* A Major Medium Term Buying Opportunity!
The 'Whistle Analogy'
EURGBP continues to follow price action from last April the Whistle Analogy…copying an approximate April 6th-19th time span but also an exact copy of a precise December 15th. So we've done this more than once. This analogy also matches the wave count channels pitchforks and sentiment.
A Slowing of the Decline
So although the spike to 7905 ended a short term trend sequence and provided an extreme point to draw a down channel off, it likely only starts a period of consolidation in a 7905-55 range before the downtrend resumes later this week to 7860 the equality target. Again this should provide prompt a retracement to the former broken 7955 low but continue to hold below now pivotal 7980.
Shifting our Trade Plan
Our strategy then is to stay short and sell rallies for now looking to reduce on new lows and start buying for an eventual recovery through 8005 to signal 8100-65 in a major reversal.
Further videos or commentaries are available from www.marketvisiontv.com or @EdMatts on Twitter.
Would you like to see more third-party contributors on DailyFX? For questions and comments, please send them to research@dailyfx.com
