I have seen a few Elliott wave traders calling a long entry for the past few weeks, but Euro has kept weakening.
I also entered a long trade, but took some small profits only.
ABC correction might have finished at last. After the first impulse waves which started around mid December 2019 finished around mid January 2020, EURGBP has been experiencing time-consuming retracement. If I look at the structure of waves in details, there is a good chance that this correction has ended or is ending.
If you look at 4 hours chart below, we can observe divergence on RSI as well, which indicates weakening downside momentum.
If this analysis is correct, the next up swing should be strong wave 3. You could expect strong wave breaking past the recent high (0.86). Let's see how the price behaves in coming days. If the price remains weak, there could be an alternative scenario.
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