EUR/GBP bullish as long as a-c trendline holds
This 4h chart on the EURGBP cross shows an impulsive move with a complex correction for the second wave that is still in progress and the fact that the a-c trend line is still holding makes a bullish case out of it.
Today we have the CPI (Consumer Price Index) or inflation out of the United States and this represents a US dollar driven event. The thing to do when this is happening is to try to be invested as much as possible in crosses and not dollar majors.
A running correction like the one above is always having an x wave that is formed out of a zigzag family pattern and usually that is the moment bears are being squeezed the most. It happened here as well and the fact that wave b of the last triangle is higher than the x wave means that the triangle will be at least an irregular one.
Keep in mind that Friday’s flows are going to affect price action as well today and this makes any trade that expires on Friday after the fix a really tricky one as the general rules of supply and demand are not there anymore, mostly classical options expirations influencing price.
How to trade
In both cases it is bullish as bullish can be and we can’t see why not a Friday squeeze on the Euro pairs to be in cards.
That being the case, we are favoring a call option from current 0.7760 area with daily expiration and if price is taking the highs in wave b, namely moves above 0.7900, put options are recommended with the same expiration date.