EUR/GBP: A fakeout of the psychological number 0.8 anyone?

FX:EURGBP   Euro / British Pound
72 0
4hr TF.

The higher-timeframe picture resembles the following:

Weekly TF: There is clear buying pressure being seen on this pair, and as a result, price is now trading around the weekly decision-point area once more at 0.80328-0.79780. If selling interest comes into the market here, the first trouble area we see is around the weekly demand area below at 0.76931-0.78623.

Daily TF: Fresh buyers are being seen on the daily timeframe around the 0.78905 level, which in all honesty was unexpected, since we believed price would challenge the daily demand area below at 0.78117-0.78533. On this timeframe we see very little stopping price trading all the way back up to daily supply at 0.80328-0.80024, which price has very nearly hit already.

The 4hr supply area at 0.79778-0.79664 was clearly not enough to repel the buying onslaught recently seen. The market seems to be ‘resting’ for now, as price is currently ranging (Pink rectangle ) between the high 0.79950, and the low 0.79789.

A break out of the temporary 4hr range will likely encourage buying up to the round number 0.8, big-figure levels such as this are usually huge magnets to price! Nevertheless, what we’re drawn to for the time being is the 4hr supply area above at 0.80151-0.80085 (a pending sell order is set just below at 0.80068) for two reasons:

1. This area is begging to be spiked, as the round number highly likely has an unimaginable amount of stop orders set just above, and also not forgetting the breakout buyers’ orders also. So a fakeout above this round number into the aforementioned 4hr supply area would likely give pro money liquidity in which they would need to sell, simply put, buy orders for their sell orders.
2. Notice that the 4hr supply area is the last fresh area below where supply was already consumed (The supply consumption is depicted with the black-dotted down trendline – pro money likely consumed supply as price was dropping, essentially clearing the path north for any buying), as all the levels above are very likely consumed, making this area a place where pro money were very likely active, indicating there may well be unfilled sell orders still lurking there.

Pending/P.A confirmation levels:

• No pending buy orders (Green line) are seen in the current market environment.
• No P.A confirmation buy levels (Red line) are seen are seen in the current market environment.

• Pending sell orders (Green line) are seen just below 4hr supply (0.80151-0.80085) at 0.80068. The reason we have set a pending sell order here is because we believe if/when price reaches the round number 0.8, a fakeout (spike) may be seen up to this 4hr supply area making it a great place to look for a first-time reaction.
• No P.A confirmation sell levels (Red line) are seen in the current market environment.

• Areas to watch for buy orders: P.O: No pending buy orders are seen in the current market environment. P.A.C: No P.A confirmation buy levels are seen in the current market environment.

• Areas to watch for sell orders: P.O: 0.80068 SL: 0.80158 TP: Dependent on how price approaches). P.A.C: No P.A confirmation sell levels are seen in the current market environment.

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