*Yellow = 200 EMA | Blue = 100 EMA
This is my analysis of
EURGBP
, a pair which has a crossroads ahead of it, particularly this upcoming week. Currently, I see 3 different options:
A) Play into Consolidation
This is the most probable option especially because we're currently moving on a steep trendline and on bearish divergence. Current price action could eventually trade up to resistance, but it is most likely going to be shot off of resistance and back to its support.
B) Play for the All-Time High
This is less likely but does offer considerable gains if it does. First, we just broke out of the current price channel and "kissed" off minor support which is in line with the 0.382 level (In the box). Along with that, we see the 100 EMA about to cross the 200 EMA on the 1D indicating strong bullish sentiment. What I think could potentially happen is that price originally respects the upcoming resistance but only retraces to 0.382 Fib level before shooting past resistance and making a play for the all-time high.
C) Move down to 0.5 Fib Retracement on the Weekly
I don't feel that this is particularly likely, but again, if it does occur it would offer considerable profit and is worth watching for. The 0.5 Fib Retracement on the weekly has been used as support and resistance in the past, and if we break consolidation to the downside it may give us enough momentum to move down to the 0.5 level.
Good luck Traders!
This is my analysis of
EURGBP
, a pair which has a crossroads ahead of it, particularly this upcoming week. Currently, I see 3 different options: A) Play into Consolidation
This is the most probable option especially because we're currently moving on a steep trendline and on bearish divergence. Current price action could eventually trade up to resistance, but it is most likely going to be shot off of resistance and back to its support.
B) Play for the All-Time High
This is less likely but does offer considerable gains if it does. First, we just broke out of the current price channel and "kissed" off minor support which is in line with the 0.382 level (In the box). Along with that, we see the 100 EMA about to cross the 200 EMA on the 1D indicating strong bullish sentiment. What I think could potentially happen is that price originally respects the upcoming resistance but only retraces to 0.382 Fib level before shooting past resistance and making a play for the all-time high.
C) Move down to 0.5 Fib Retracement on the Weekly
I don't feel that this is particularly likely, but again, if it does occur it would offer considerable profit and is worth watching for. The 0.5 Fib Retracement on the weekly has been used as support and resistance in the past, and if we break consolidation to the downside it may give us enough momentum to move down to the 0.5 level.
Good luck Traders!
