We discussed EURGBP back on October 28, when we highlighted the potential for a larger recovery within a complex correction, with price expected to continue higher within wave D of a broader triangle pattern. CLICK HERE
Since then, EURGBP has delivered on that view, staging a solid rebound from the 2025 lows and gaining around 7%, confirming the recovery scenario. However, from both Elliott Wave and cycle perspectives, the structure now appears more mature.
EURGBP seems to have completed a complex WXY correction within wave D of a still-unfinished A-B-C-D-E triangle. As such, the pair may now be transitioning into the final wave E, which is typically slower and more complex. Wave E is expected to unfold in three legs — (A), (B), and (C) — and could take time to develop, likely extending through at least the first half of 2026.
After the recent corrective recovery in wave (B), the focus shifts back to the downside. Weakness can resume within wave (C) of E, with potential targets seen in the 0.85–0.84 area, and possibly even deeper toward 0.83 support near the lower boundary of the triangle.
Overall, while the broader structure remains corrective and range-bound, the near-term outlook suggests fading upside momentum and a gradual move lower as the final phase of the triangle unfolds.
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