Let’s keep in mind that ECB may not do any hawkish actions if we consider that Eurozone inflation is below that in the US, so I think they will wait on FED first. However, if inflation will continue they will be forced to act; rather sooner than later, and such remarks can still stabilize the pair. Technically, we see pair still in a contra-trend movement because of overlapping decline, but we need that strong break and close above 1.1626 resistance for a resumption higher.
EURUSD is coming higher very nicely back towards 1.1663, the former lows, after a bottom formation at 1.1520/25 area that we recognized because of a five-wave drop and break out of a downward channel. As such, we think there can be more gains coming, ideally after a current pullback. However, break and daily close above 1.1670 can be very bullish for the pair.
EURUSD 4h Elliott Wave Analysis
Cable did not change much in the last few sessions, still looking slow and corrective so ideally, it’s in the middle of an impulsive recovery. Important support remains at 1.3747 ‘-1.37 area, where pair may stabilize and find new buyers. The invalidation level is at 1.3645.
GBPUSD 4h Elliott Wave Analysis