EURGBP-Waiting for imbalance in favor of Professionals

EURGBP has shifted from a trend (down) context to a range context. We have reached the lower channel line on the 4hr time frame. The market has returned to a state of equilibrium between the supply and demand. We have recently witnessed the formation of preliminary supply and demand zones (0.89233.0 & 0.88835 and for the past few days price has been moving within a +/-40pip range .However looking from a daily perspective there is still a chance for price to move further downwards perhaps to test the 0.87xx zone. This can only happen if market makers see value in the price difference in that direction. For now market makers are currently looking for a direction with less resistance thereby absorbing most of retail traders orders At this moment chat patterns might not serve us well but it will be best to keep watch on volume changes which can signal the potential direction of the next movement A break and retest of this range (zone) in either direction is likely to give us an idea of the new direction for the market makers.

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