EUR/USD and GBP/USD Elliott Wave Analysis: More Weakness Ahead

Technical analysis of Forex market

The escalation of US-Russian tensions over Ukraine and hawkish Feds policy is worrying for investors which are moving into cash. We see a sharp sell-off on the stock market which may try to stabilize, but technically weakness appears incomplete. If risk-off will resume, then be aware of more JPY and USD strenght.

EURUSD is trading south with nice five waves down to 1.1300 so more weakness will be expected after a three-wave structure. We are talking about a-b-c that can stop at 1.1360/70 resistance.

EUR/USD 1h Elliott Wave analysis

Cable is coming nicely to the downside, into the third leg of a retracement, which can be wave C but even this one must be made by five sub-waves so be aware of a retest of the lows while the market is below 1.3544.

GBP/USD 1h Elliott Wave analysis