Natural gas and EURGBP Update – Elliott wave Analysis
Natural gas was trading sideways since mid November till December, unfolding an overlapping pattern, which is in Elliott wave terminology known as a triangle correction. A triangle has five legs, and each of them has three more minor waves. The final leg, is leg e), which looks to be completed near the 4.20 region. That said, a suggestion that the triangle is completed is a sharp, impulsive rally towards the 4.6 area, which is now being followed by a temporary correction as wave ii). Possible support for wave ii) can be found near the 4.30 area, from where more upside may follow.
A futher rally above the 4.76 area would confirm more gains.
Natural gas, 1h
EURGBP is recovering nicely, unfolding a beautiful bullish impulse, up from 0.886 level, labelled as wave 3). Wave three is the strongest and firmest wave, and it has a five-legged structure. Specifically we see price breaking above the upper channel line, which gives us confirmation for more upside, and that price may touch levels near the 0.9100 region. That said, at the 0.9100 region, various Fibonacci ratios of 261.8 may react as resistance and push price into a temporary pullback.
EURGBP, 1h
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