Seems like the pound has been its normal overexhuberant self Alex. It overshot the expected levels to your 50% Nominal and then rebounded with a vengence.
While the pound finished its bear wave count , the euro hit the amount fast and hard on Friday morning. Of course with the rapid fall of this Euro/USD there were rationalizations a plenty along with fundemental explainations. There was everything from a redundant statement concerning China and US monetary policy by Trichet, to some specified shift in egy by a major US bond market participant in Bill Gross in Pimco. The announcement by Gross certainly obtained the grip in the media.
With all of that said the Euro/USD remains displaying text book techinical behaviour coming into this week. And the E/U has finished the wave in its bear station, technically we're at we find ourselves looking for some insight.
Here are 3 appearances at the e/u. Weekly, Daily and the 4hr.
Technically, there's a lot to consider here. I love to begin with the big picture . Here's the chart surrounding. While we only completely the 5th wave on the 4hr chart bear channel end in a retest of the December 2004 large, we've also just finished a 3/8's retrace of the 5th wave of the euro rally in the 1.16 low of november 05':
Very nice analysis. Concise and to the point. Thank you. Never have been a huge fan of waves (most likely due to my ignorance of the topic and insufficient incentive to delve further into the topic - I think that's called laziness -- Ha!) But, your excellent charts sure makes one to consider exploring the topic.