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EURGBP Elliott Wave Analysis Trading Lounge 4 Hour Chart, 13 October 2023

Euro/British Pound(EURGBP) 4 Hour Chart

EURGBP Elliott Wave Technical Analysis

Function: Trend

Mode: impulsive  

Structure: 3 of 3

Position: blue wave 3

Direction Next higher Degrees: wave 3 of 3 started

Details: red wave 2 of 3 completed between fib level 50.00 to 61.80, now 3 of 3 in play . Wave Cancel invalid level: 0.85231

The EUR/GBP Elliott Wave Analysis on the 4-hour chart, dated 13 October 23, is an essential guide for traders and investors in the Euro/British Pound (EUR/GBP) currency pair. The analysis is framed within the context of the Elliott Wave theory, a powerful tool for understanding market trends and price movements.

In this analysis, the primary function is to identify and ride the prevailing trend. The analysis characterizes the market as being in a trend mode, specifically an "impulsive" one. Impulsive waves are typically associated with strong, directional price movements. The structure under examination is "3 of 3," which implies a thorough examination of the third wave within a broader Elliott Wave sequence. The third wave in Elliott Wave theory is often the longest and most powerful, making it of great interest to traders.

The position is denoted as "blue wave 3," indicating that the analysis is concentrating on this particular wave within the larger wave structure. This is significant as it helps traders focus on the exact wave that is currently in play and likely to be influencing price movements. The analysis notes that "wave 3 of 3 started," suggesting that a strong and sustained trend may be underway.

An essential detail provided is that "red wave 2 of 3" has completed its course, and it did so between the Fibonacci levels of 50.00 and 61.80. Understanding the completion of corrective waves like "red wave 2 of 3" is pivotal for traders, as it signals the potential beginning of a powerful impulsive wave.

The "Wave Cancel invalid level" for this analysis is determined at 0.85231. This level serves as an important reference point for traders to assess the effectiveness of their trading strategies and manage risk properly.

To summarize, this EUR/GBP Elliott Wave Analysis for 13 October 23, presents a valuable outlook on the current state of the market. It confirms the emergence of a significant impulsive wave, namely "3 of 3," and provides a clear perspective on the completion of a corrective wave, "red wave 2 of 3." Traders are encouraged to consider this analysis to make informed trading decisions in the EUR/GBP currency pair.

Technical Analyst: Malik Awais

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