Pound Sterling underperforms in the Asian session as ‘hard-Brexit’ induced worries resurfaced. Focus now shifts towards release ahead of the Eurozone Sentix Investor Confidence and unemployment rate numbers. German trade balance data slightly better than expected, euro could garner support.
Technical Analysis:
EUR/GBP bounces of 20-DMA at 0.8454 on Tuesday's trade (last week). Upside gathers steam as we head into European session. The pair has breached major trendline resistance and has taken out 100-DMA at 0.8626. Momentum studies are bullish, we see scope for test of 0.8765 (50% Fib of 0.9225 to 0.8304 fall). Bullish invalidation only below 20-DMA currently at 0.8481.
Thanks for your great analysis!
Here is my view on EUR/GBP if you are interested:
Based on Market Profile (volumes) and Price Action there are two very strong resist/support zones. If you look at the Cummulative volume on the right you can see two main volume areas. The higher one was formed by cummulation of short trades that went into a strong sell-off. If the price comes there again there is high probability that the sellers will become active again.
Support around 0.8544 is very strong because it lies exactly at at a place where the heaviest volumes of the day were created. From this place the price shot higher indicating strong buyers in this area.
If trading those levels be extra carefull and dont trade during strong GBP news.
If you are interested there are more Market profile swing and intraday analysis in my profile page. You are very welcome there!
Dale
Here is my view on EUR/GBP if you are interested:
Based on Market Profile (volumes) and Price Action there are two very strong resist/support zones. If you look at the Cummulative volume on the right you can see two main volume areas. The higher one was formed by cummulation of short trades that went into a strong sell-off. If the price comes there again there is high probability that the sellers will become active again.
Support around 0.8544 is very strong because it lies exactly at at a place where the heaviest volumes of the day were created. From this place the price shot higher indicating strong buyers in this area.
If trading those levels be extra carefull and dont trade during strong GBP news.
If you are interested there are more Market profile swing and intraday analysis in my profile page. You are very welcome there!
Dale