The reaction to yesterday’s FOMC minutes were actually muted across the board, as we haven’t seen anything unexpected from the FED which will wait with raising rates for now even if the economic data will improve.
On EURUSD, the price held the daily lows and is now moving even slightly higher, above the Elliott Wave channel line so we suspect that five waves down are complete and that the pair is in a three wave retracement up in wave 2)/B) that can be looking for 1.1250-1.1300 before turning down again. Keep in mind that we see bearish trend and that current rise is only temporary.
EURUSD 30min Elliott Wave Analysis
If EURUSD is in a corrective rally than cable can be doing the same. An updated count shows a completed five wave decline at the latest low, so the current bounce is temporary. We are tracking a double zigzag, labeled as (w)-(x)-(x) that can stop at the 1.5630-1.5670 area.
GBPUSD 1h Elliott Wave Analysis
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