€/£-EUR/GBP – Bearish Intermediate (C)

€/£-EUR/GBP finalized the Impulsive Sequence in Primary Wave A (purple), which started in July 2015 and ended in October 2016.
Since October 2016 the Corrective Structure began unfolding, which pretty much looks like a Flat Correction.
The Flat Correction labelled as Intermediate (ABC) (green) is suggesting that €/£-EUR/GBP might be preparing for a Bearish Swing which could measure 1000 pips.

€/£-EUR/GBP – Weekly Chart (picture):

The Flat Correction in Intermediate (B) (green) fits nicely the typical 3-3-5 Sequence.
In order for the Structure in Primary B (purple) to be complete and the Up-Trend to resume, a Bearish Swing in Intermediate (C) (green) will still need to take place.

Intermediate (B) (green) unfolded indeed as per our previously posted “EUR/GBP – Short-Term Bullish – Medium-Term Bearish” analysis.

€/£-EUR/GBP – Daily Chart (picture):

€/£-EUR/GBP – Corrective Structure – Wave Analysis:

• Intermediate (A) (green) unfolded with 3 Swings Sequence, measuring a value of 964 pips from October until December 2016.
  According to the time cycles, Intermediate (C) (green) should have the same length and should unfold in the same amount of time as Intermediate (A) (green).
• Intermediate (B) (green) is possibly about to complete its Structure according to the Wave Count, with the last piece of Minor C (red) waiting to be confirmed.

Intermediate (B) (green) – Break-Down:

• Minor A (red) determined the Flat Correction Structure with the typical 3 Swings Sequence in its Minutes abc (light blue).
• Minor B (red) unfolded with a Complex Corrective Structure in its Minute abc (light blue) Waves, showing an Expanded Flat in Minute b (light blue).
• Minor C (red) began its 5 Swings Sequence and possibly about to give its ‘’last bullish breaths’’, due to very possible weakness in the Volumes, which could indicate the typical bearish Divergence at the 5^th Minute Wave (green).

€/£-EUR/GBP – Daily – Interactive Chart:

Fibonacci Projections and Speculation:

Intermediate (B) (green) would be expected to complete at or around the 0.90500 / 0.91500 Levels which represent the following values:

• 61.8% Fibonacci Retracements of Intermediate (A) (green).
• 150-161.8% Fibonacci Extensions of Minors A & B (red).
• 8% Fibonacci Extensions of Minutes iii & iv (green).

€/£-EUR/GBP – 4H Chart (picture):

Minor C (red) – Wave Count:

• Minute i (green) commenced the Impulsive Structure with a gap and determined the overall Bullish Rally.
• Minute ii (green) unfolded as a Zig-Zag, filling the gap and touching its Support.
• Minute iii (green) unfolded its powerful Rally with clean Impulses in its Minuettes (i), (iii) & (v) (black), with a sharp drop in Minuette (ii) (black) and with an Expanded Flat in Minuette (iv) (black).
• Minute iv (green) has proven itself difficult to label, showing in in the end a Complex Double Three Structure in its Minuettes (wxy) (red).
• Minute v (green) is still unfolding, with the final Impulse in Minuette (v) (black) being awaited and very possibly show a Bearish Divergence at or around the 100-161.8% Fibonacci Extensions of Minuettes (iii) & (iv) (black).

€/£-EUR/GBP – Bearish Intermediate (C) – SELL Positions:

• Aggressive:
  Entry Level – 0.90500
  SL – 0.92300

• Conservative:
  Entry Level – 0.91500
  SL – 0.92700

• Targets:
  0.87500
  0.86000
  0.84000
  0.81000

€/£-EUR/GBP – 4H – Interactive Chart:

Safety Measures:

• When in the green, one would move the SL to break-even or in profit.
• If Conservative, one would wait for another Swing on the Up-Side and then look for a Bearish Divergence confirmation.
• If very Conservative and awaiting a Bearish Breach, one would watch the Lower (dotted) Trend-Line for Bearish Breach confirmation and afterwards looking for a possible Flag Formation.

Many pips ahead!