Cycle analysis works well, especially on cross pairs like EURGBP, EURAUD, GBPNZD, and similar, where central banks often play a strong role and coordinate policy — sometimes even intervening when one currency moves too far. In my view, cyclical analysis is most effective when it aligns with the Elliott Wave Principle, as both can highlight major turning points at key levels when sentiment reaches extremes.
Today we’re focusing on EURGBP, which has mostly traded sideways since 2016. We’ve been pointing out a potential cycle bottom toward the end of 2024, suggesting an important reversal point supported by a strong technical level at 0.8282. This support area also aligns with the lower side of wave B within a complex correction. Since the decline from the 2016 highs wasn’t impulsive, that added confidence — from both a cycle and Elliott Wave perspective — that a recovery was due.
So far, we’ve seen a solid reversal, with the pair already up more than 7%. The question now is how much further it can go. From both Elliott Wave and cycle standpoints, EURGBP appears to be entering the later stages of its bullish cycle, though some limited upside remains possible toward 0.9056. That area could mark the upper boundary of an unfinished A-B-C-D-E triangle. If correct, the price is now in wave D, approaching key reversal zone.
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