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EURGBP Elliott Wave Analysis Trading Lounge 4 Hour  Chart, 5 February 2024

Euro/British Pound(EURGBP) 4 Hour Chart

EURGBP Elliott Wave Technical Analysis

FUNCTION: Trend

MODE: impulsive  

STRUCTURE: red wave 3 of 1

POSITION: black wave 3

DIRECTION NEXT LOWER DEGREES: red wave 4 of 1

DETAILS: red wave 2 looking completed at 0.85212, now red wave 3 of 1 is in play. Wave Cancel invalid level: 0.85150

The "EURGBP Elliott Wave Analysis Trading Lounge 4 Hour Chart" dated February 5, 2024, provides a comprehensive analysis of the Euro/British Pound (EURGBP) currency pair using Elliott Wave Technical Analysis.

The identified "FUNCTION" is "Trend," indicating a primary focus on understanding and capitalizing on the prevailing trend in the market. Traders employing this analysis are likely oriented towards strategies that align with sustained directional movements.

The specified "MODE" is "Impulsive," suggesting that the current price action is characterized by strong and directional movements. Impulsive waves are typically associated with the initiation or continuation of a trend, providing trading opportunities for trend-following strategies.

The "STRUCTURE" is labeled as "Red wave 3 of 1," indicating a detailed breakdown of the ongoing wave count within the broader structure of the first higher degree. This level of granularity in the analysis allows traders to gain a more nuanced understanding of the market dynamics.

The "POSITION" is defined as "Black wave 3," signaling the current position within the broader wave count. Black wave 3 is often associated with strong and sustained trends within the Elliott Wave framework.

In terms of "DIRECTION NEXT LOWER DEGREES," the analysis points to "Red wave 4 of 1," indicating the expected correction or consolidation phase following the completion of red wave 3.

The "DETAILS" section notes that "Red wave 2 looking completed at 0.85212," suggesting that a corrective wave, identified as red wave 2, has likely concluded. The market is now anticipated to be in the early stages of red wave 3.

The "Wave Cancel invalid level" is specified as "0.85150." This level serves as a critical reference point, and any breach of this level may prompt a reevaluation of the current wave count and market outlook.

In summary, the EURGBP Elliott Wave Analysis for the 4 Hour Chart on 5 February 24, emphasizes an impulsive movement within the context of red wave 3. Traders are advised to closely monitor the market, especially the specified invalidation level at 0.85150, for potential shifts in the wave count.

Technical Analyst: Malik Awais

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